Black market is economic activity in which you sell and buy goods (goods mostly drugs and arms) that are illegal. The price of goods in black market is different from open market price. The goods are cheaper than legal or open market. Mostly the transaction is in cash, because cash transaction are not bee traced by any law enforcing agency as compare to bank transaction. The trade of drugs are prohibited and these are trading in the umbrella of black market. When government banned the trading of anything and it is harmful need of nation in the result they are supply through the channels of black market (Rodrik 10).
Black market is the most important problem that are generally faced by the whole world and especially faced by third world poor countries. In third world the structure of government is weak and the network of black market is strong, in the result government cannot control the black market activities. Black market is source of income and that are mostly use in unlawful and extremist activates, most of the black market’s work under the control of terrorist organization or militant groups (de Leon 10). There is close link between terrorist violent activates and black market, because this is the main source of funding for their violent activities.
There is many other flaw back of black market for their stakeholders such as fraud, the occurrence of violence in deal. The deal you finalize in black market if fraud is occur you cannot claim or challenge this in any court of law because the channel that use for your trade is also illegal. Black market is also harmful for state national legal market, because there is two way of traffic of goods one is legal and other is legal black market (Baum). The prices of goods are not sustained and government lose their controls open market.
The goods are sell and buy in black market they are banned in open legal market, such as drugs are in most of the countries are banned but they are available in market and fulfill the demands. Law enforcing agencies trying to control the flow of goods from black market economy but it is still difficult to control it because the network of black market economy is large and strong (Rodrik 10).
The trend of Black markets flourish in most countries during war time period . States that are facing civil unrest or full fledge war, this is an ideal time for black market. (Watson 32). During war time government agencies fails to maintain the rit of as compare to peace time.
Prostitution, Weapons, Alcohol and some others animals are main commodity of black market the trade of these are officially banned or illegal. If the government gives the license for the trading of these items it will help to overcome the role of black market. When these items comes under the control of government they will paid customs and duty and in the result government get huge money in form of taxes (Cronin 87).
Black market is an economic activity that are illegal and government have no control over the prices of that goods that are sell and buy in black market. Black market mostly flourish in most countries where is civil unrest. Prostitution, Weapons and Alcohol are the main commodities of black market, the deals in black market is illegal and in case of fraud you cannot challenge in any court of law.
Baum, Dan. “Legalize it all.” Harper’s Magazine 24 (2016).
Cronin, Audrey Kurth. “ISIS is not a terrorist group: why counterterrorism won’t stop the latest jihadist threat.” Foreign Aff. 94 (2015): 87.
de Leon, Cedric. “Black from White: How the Rights of White and Black Workers Became “Labor” and “Civil” Rights after the US Civil War.” Labor Studies Journal 42.1 (2017): 10-26.
Rodrik, Dani. “An African growth miracle?.” Journal of African Economies 27.1 (2016): 10-27.
Watson, Clifton N. Post World War II Black Migration, Historical Memory, Community Building and Activism in the Late 20th Century. Diss. Fordham University, 2015.