What is a black market in economics?

What is a black market in economics?

Table of content:

  • What is a black market?
  • Who controls the black market?
  • What can I buy on the black market?
  • Examples of unusual products on the black market

Where there are some permits, there are prohibitions as well, and prohibitions always cause a desire to bypass them. One of integral parts of the economy is the black market. So, what is a black market?

There is demand – there is an offer, this is how the black market is born. People who can get the desired product, offer it in different ways and get profit for it. It should be noted that trading in black is much more profitable than legally: for a seller as well as for a buyer. First, a seller himself sets a price, not paying attention to antitrust laws and rules dictated by the market. If this is a special commodity, then it may not have competition, and consequently, prices are set simply cosmic. For a buyer, transactions on the black market are beneficial, because the price of the goods excludes payment of taxes and government fees, which makes the cost somewhat cheaper. Secondly, you can get anything on the black market, which can be prohibited by laws of a state or society, from drugs to human organs.

Who controls the black market?

In addition to the participants, the driving force of the black market is its organizers. Usually, the goods for sale on the black market are interlinked with smuggling – where else does the weapon, or drugs, come from? It is not difficult to guess that organized crime controls the black market.

The act of transferring the rights for goods occurs through very difficult formed communications of buyers with intermediaries or sellers, and this is not surprising, because all participants in illegal operations become targets of harassment by controlling state bodies.

What can I buy on the black market?

In addition to absolutely harmless types of goods banned by the state for one reason or another, people and ammunition can be purchased on the black market. Examples of such markets:

  1. Alcohol. Despite the fact that “combustible liquid” is authorized for sale in most countries, for residents of those places where the dry law operates, alcohol is available only in black markets. To date, these are Muslim states, where even the storage of alcohol is a reason for imprisonment.
  2. Black market of weapons. According to official data, the legal sale of weapons significantly exceeds its turnover and ammunition on the black market. And yet such a market has been operating since the eighties of the last century.
  3. Trade in stolen antiques and works of art. It occurs mainly through online auctions and is carefully monitored by the regulatory authorities to bring to court both a seller and a prospective buyer.
  4. Rare species of reptiles, birds and animals, sale of contraband black and red caviar. In addition to the fact that these crimes are immoral, participants in such trafficking can be sent to prison for a period of 3 years.
  5. Sale of people – the slave trade. One of the most serious crimes that exist. In some countries, the slave trade provides for the death penalty.
  6. Prostitution, sale of sexual services.
  7. Sale of erotic materials, pornography where prohibited.
  8. Sale of human organs for operations (cloning). Most often, donors are absolutely ordinary people and children who are the targets of abduction.
  9. Sale of fake documentation. It is prosecuted by law in any country, the term of imprisonment is from 3 years.
  10. Sale of narcotic substances. The law is punishable not only for sellers, but also for buyers. 11. Sale of software to break into computer programs.

There are examples of unusual products on the black market:

  1. Sugar

Usually, if it is an illegal product sold on the black market, then weapons and drugs come into the head. But a product like sugar is no less popular. For example, in Malaysia, there is a large black sugar market, as it is almost inaccessible on a free sale. This is mainly not about the usual white sugar for us, but about turbine, brown sugar, which is more useful for a person and qualitative.

  1. Almonds

Almonds, like any other nut, are considered as the most useful snack. On the bag from the store it is written that this is a natural raw nut, but in fact, it is not. In conditions of legal trade by standards, almonds must undergo pasteurization in order to destroy cyanide, which is part of the nut. Cyanide is a poison used for military purposes.

  1. Means for washing

Every day everyone uses a variety of means to maintain cleanliness in the house and, of course, from time to time, do laundry. One of the most popular products on the black market is just the means for washing, which bring a high income to criminal groups. Large criminal organizations once sent their agents to supermarkets to purchase a variety of washing aids to learn the formula and organize their own clandestine and profitable enough production.

  1. The rhino horn

A person is often not tolerant animals. Many species are already considered extinct or are on the verge of extinction. The most popular commodity on the black market is the horn of the white rhinoceros, whose population has fallen dramatically.

  1. Transportation

Illegal transportation is also popular on the black market. In many cities of the world there is public transport in the form of buses, taxis, which operate legally and pay taxes, and the government regulates and controls the quality of the carriers. Transportation of passengers by transport on the black market is much cheaper than official carriers. It is the low price that has become the priority that forces passengers to turn a blind eye to low-quality service and the fact that an illegal carrier does not pay taxes to the state.

  1. Score in any video game

Recently, interest in video games has increased, just a couple of years ago it was difficult to imagine to what a high level it would rise. In this regard, criminal groups, using the services of hackers, break into the players’ money accounts, gaining illegal access to passwords and personal information. After that, the data is sold on the black market, earning money.

  1. Hair

Among the popular goods is hair. Wigs made from natural hair appear on the black market illegally, through the robberies of beauty salons and specialized stores and individuals. All this is done for profit. It is hard to imagine that someone specially grew hair for years to sell them on the black market.

  1. Baby food

Every mom wants her baby to be full and healthy. Recently, for the formula on the basis of which large producers produce balanced baby food, there is a hunt. The fact that it is based on the technology of production of heroin and methamphetamine. Manufacturers are taking unprecedented security measures today to protect the formula before the finished product hits the counter.

  1. Sperm

One of the most strange products of the black market is sperm. This product is quite popular among those who deal with the issues of sperm donation and artificial insemination. In Canada, sperm trade is banned and considered illegal, as it must comply with standards and medical indicators of quality and safety, the provision of which costs a lot of money and costs.

  1. Plastic surgery

The demand for plastic surgeons has increased. People strive for perfection at all costs. The doctor, especially the surgeon, to whom people trust their lives, should be highly qualified, and the services of such a specialist are expensive. Unfortunately, people are turning to underground surgeons for the sake of economy, risking everything.

  1. Stewardess Uniforms

Many strange goods are sold on the black market. Along with jewelry, clothes, mobile phones, you can buy a uniform of flight attendants of Japanese airlines. Some people are interested in their own purposes, others acquire it for filming in pornographic films, and others like criminals for the possibility of illegal access to the airport premises.

  1. Organs

It is not a secret that on the black market people are traded. People from different parts of the world sell their organs for a lot of money, and it’s not just the kidneys, but also the hair and blood. The world of black transplantology is terrible. Strangely enough, but people are ready to sell anything to buy a new iPad.

  1. Credit cards

There are many options for buying a credit card on the black market. People buy only credit card numbers, buy stolen cards or duplicate cards. For $ 35 you can buy a set of stolen credit cards.

So, what is a black market? It is everything you can buy or sell illegally.