KW BLACK MARKET POWERPOINT Revision. DUE AUG 11 6pm EST
King Wave
kwBlackMarket648.pptxWhat keeps the black market in business
By: KW
Business Management Major
Where goods and services are bought and sold illegally.
Underground market or underground economy.
Does not operate within the formal economy.
Every day billions of goods and services are exchanged on the world's markets. We see this in retail stores, securities exchanges, and other avenues.
These mediums of exchange are regulated by governments and commissions that seek to ensure the smooth, fair, and legal transfer of goods. However, this is also another way consumers can get access to the products and services they desire while flying under the government's radar. This is through what is referred to as the black market.
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Purpose
Inform people on how the black market works
What keeps the black market in business
Unrecorded transactions
Licensing restrictions
Outlawed controlled substances
What keeps the black market in business
Unrecorded transactions
Licensing restrictions
Outlawed controlled substances
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Unrecorded Transactions
Almost all of the operations performed in these black markets are unrecorded
The reason why people trade services or goods in the black markets, is because such people do not want to incur the taxation of illegal products or services.
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Unrecorded Transactions
However, we cannot deny the fact that some individuals engage in black market trade, just because they were unaware that there are laws they are not adhering to.
An example of how people can find themselves participating in black market services without knowing is when they hire housekeepers but do not realize they are meant to pay employment taxes.
Licensing Transactions
Another reason that makes people endeavor in black market transactions is that of the licensing restrictions that are imposed by the government on the many occupations, making individuals who cannot cope with the enormous fees engage in black markets.
In some situations, the process of acquiring the required licenses for operating a particular business can be costly to a businessperson, not forgetting the long process it takes to do it.
Outlawed Controlled Substances
The argument over whether an outlawing controlled substance leads to the growth of the black market is a long-standing one.
This measure which aimed at deterring the use of controlled substances has associations with the constant growth of the black market.
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Outlawed Controlled Substances
The scarcity of controlled substances leads to a higher demand for these substances.
Most of these controlled substances cannot be found in the regular markets, which makes the black market the only market containing them.
Conclusion
A black market is a transaction or clandestine market that has some aspect of illegality or is characterized by some of noncompliant conduct within an institutional set of rules.
Individual entities or companies involved in the production and distribution of prohibited commodities are part and parcel of the illegal economy.
Non-compliance with trade rules constitutes a black market trade since the transaction itself is illegal
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References
https://www.havocscope.com/market-value/
