Reference no: EM13374617 , Length: 1343 words
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When I hear the word black market, pirated movies, video games, music and clothing, prostitution and illegal drugs come to my mind but the movie, Illicit: The Dark Trade, which gave me insight into every type of black market worldwide, made me realize that everyone of us might have involved in the black market activity, such as money laundering or buying fake car parts. Like what it says in the movie, "illicit goods are all around like toothpaste, pharmaceuticals, car tire, nanny, and kidney." I would define black market as economic activity that runs behind government laws. The documentary got me thinking about the advantages and disadvantages of black market, causes of black market, strictness of the law and black market, how the film surprises me and changed my perception, and my thoughts and personal experiences relating to black market.
The documentary provides me a deeper understanding about the different types of black market that makes me think about the advantages and disadvantages of this market, socially and economically. Black market disadvantages are far more damaging; firstly, it does not cause economic growth, as they do not pay taxes. Secondly, black market causes unfair competition, as it would damage the original product market because they would sell it for a lower price. Thirdly, artists and designers are not being paid for their work, as the buyers are not buying their original goods. Finally and most importantly, although some people might argue that prostitution does create jobs, income and personal satisfaction, it is considered immoral and causes more health problems. However, a benefit that I could think of is that with black market, some goods are made available. For instance, with black market, I could buy banned goods, like, snake wine, which has many health benefits, like stimulating hair growth, improves eye sights and increase sexual stamina. Although black market is considered negative for most people, there are some advantages.
The portrayal of black market in the film made me think about the cause of it and I do agree with the documentary that the revolution in technology and politics caused the black market to boom, as with the Internet, we could buy illicit goods easily, without knowing whom the producers and sellers are. Furthermore, passport is not needed to buy, transfer or sell the illicit goods around the world. I also agree with the movie that the cause of black market is greed, as they want to make as much profits as they possibly can. The want to avoid the price ceiling set by the government. One good example that I can think of is when there is a shortage of common goods like electronic devices, parking spaces, food or cars, they would be selling these goods to the public for a much higher price. This also brings up another point that when there is demand, people will find ways to get the supply, whether the goods are illegal or not. As an example, college students would buy marijuana from an illegal supplier, as it is not being sold in the legal market and the illegal supplier would take advantage of this. As it is not cold in the legal market, there will definitely be a competitive market in the underground market itself. For instance, every illegal marijuana supplier would want to sell their goods at a lower price so people would but it from them.
The film did not concentrate only on one country but several countries around the world and in class, we discussed that this country, the United States of America has the highest amount of underground economics in the world. So, I do believe the concept of demand and supply applies here, as people have more money here, they demand more goods. However, I do believe that this issue is much more prominent in countries with corrupted government or in countries with no strict laws. I have learned that marijuana is much more common in America but less common in Japan, as Japan has stricter laws when it comes to drugs. For example, the consequence of being caught with certain amount of drugs, even recreational drugs like marijuana in Malaysia is death penalty, which personally I find unfair. No doubt, these laws are created to protect the people from harming themselves and the people surrounding them. However, some recreational drugs, like, marijuana should be legalized, as that many people are using and consuming it and economically, the government could make a lot of money from taxing the product when it is being sold or imported. In addition to that, some studies prove that alcohol and tobacco are much more dangerous and cause more harm than marijuana.
Some of the facts in the film do surprise me in a way that change my perception about black market and teaches me something about black market, like, the black market create jobs and produce revenues. They also pay taxes and local dividends. This is contrary to my belief, as I always thought that the black market exists because they want to avoid paying taxes and sell their goods at a lower price than the price floor. They also want to sell goods that are high in demand but not available in the legal market. However, some of the facts in the film were not surprising at all, like it is difficult to stop this problem because it is a global transactional problem. Each countries have different laws and police are trying to stop this problem but is constraints by the border and lack of cooperation with international authorities. In other words, governments are trapped in their own borders. In my opinion, a way to overcome this problem is by having all the countries sign up a contract to create an international police that is responsible to solve this issue. Another fact in the film that surprises me is that The Camorra earned more money than the largest manufacturing company in Italy.
I could relate the film with my thoughts and personal experience. For example, the film mentions that in Italy, the Senegalese are at the bottom wrong in the economy and society but back in the homeland, they were teachers and doctors. I guess that they were exploited in a new country and are not given many opportunities. From my personal experience, when I visited a few cities in Italy, I did see them selling mostly designer handbags on the street. I am surprised that they managed to get into the coliseum. Although it is illegal, I find it funny that the cops were not strict with them, as I saw them running away from the cops and the cops did nothing about it. Besides that, I do believe that the unemployed are ready to take any jobs, even selling drugs. Even so, according to the film, This underground economy does nothing to lift people out from poverty. It is the owner like Camorra who gets it all.
they sell illegal fake pharmaceuticals. Deals happen quickly. Raw materials come from India, China and the local market. Only a fraction of active ingredients and the rest is water. The starting cost is tiny. Lack the speed compared to the up to date pharmaceuticals manufacturing but labor is cheap. I am sickened by the fact that poisonous cough medicine being distributed to poor people in Panama through their social security system. In addition to that the perpetrators are never to take account for their action.
Black market has its advantages and disadvantages of black market. Black market is caused because of the demand of illegal goods and not enough supply. Usually there will be more underground economy when the laws are not strict. This assignment has certainly deepened my knowledge and instilled a new level of understanding about the black market. It has definitely changed my opinion about it. It has also made me realize that black market is everywhere and there are a lot behind it and it is hard for us to stop it.