black market price

Introduction

The black market, also known as “gray economics” or “underground economy”, refers to the illegal transaction of goods and services, with prices being determined by the buyers and sellers. It stands in contrast to regulated and legal markets, where the prices are fixed and transaction subject to government regulations. Because of the unregulated nature of the black market, prices are often volatile and much higher than those of legal markets.

Historical Perspective on Black Market Prices

Black market prices have been around since the dawn of civilization. Ancient Mesopotamian cuneiform tablets document the sale of cuneiform tablets on the black market as early as 1700 B.C. The black market was integral to the survival of early civilizations and people had to turn to the black market to purchase rare and expensive items. Ancient Egyptian hieroglyphs record the sale of rare commodities such as spices, herbs, precious stones, and even slaves on the black market. Black market prices were often determined by the rarity of the items being traded and the demand for them, with prices manipulating in line with the market forces of supply and demand.

Contemporary Black Market Prices

The contemporary black market is an illicit market that has been developed to meet the demand for goods and services that are either not easily accessible or even illegal. In essence, the black market is a reflection of society and many of the items traded on it fulfill a need in the society or a desire. Common items found on black market are weapons and ammunition, illegal drugs, restricted medicines, human organs, stolen and counterfeit goods, pirated materials and smuggled products. Prices, as in the past, are determined by the rarity of the items being traded and the demand for them.

Conclusion

The black market is an unavoidable part of the global economy and has allowed people access to goods and services that may not be easily accessible or even legal. Prices on the black market are often volatile and significantly higher than those in legal markets, where prices are fixed and transaction subject to government regulations. Nonetheless, the black market is still a reflection of society, and as such, provides valuable insight into the desires and needs amongst society.

Keywords

Black market, Gray Economics, Underground economy, Pricing, Supply and Demand, Illegal goods, Illegal drugs, Pirated materials, Human organs

Black market is any illegal trade that takes place outside of state-sanctioned regulations and laws. This could include anything from the trade of stolen goods to the sale of contraband such as drugs, tobacco or alcohol.

In some countries the black market can exist as a result of political instability or economic sanctions. For example, Cuba has been under US economic sanctions since 1962 and as a result, people in the country have had to resort to the illegal sale of goods and services.

The black market can also exist in countries with strong and stable economies, but is often thought of as a way to get around high taxes, laws and regulations, especially involving taxes. In the U.S., some people are able to avoid paying sales taxes by buying items in a gray market - in which goods are imported through unofficial channels, often to avoid price controls imposed by the government.

The black market has both positive and negative implications. Some argue that it provides an outlet for goods and services that would otherwise be expensive or difficult to obtain, while others point out that it creates an unregulated and often dangerous environment in which to conduct business.

On the other hand, it can also be a catalyst for underground crime, leading to fraud, corruption, and deviancy. As black market sales are not subject to taxes or regulations, prices of goods can be artificially inflated and the proceeds can go to finance illegal activities.

The black market also has considerable impact on businesses. Companies may be forced to compete with black market sellers for customers, who are willing to pay higher prices for goods without paying taxes. In addition, as the illicit trade of products is often illegal in one form or another, businesses may be liable for legal prosecution if they are caught unknowingly selling products that were obtained through illegal means.

Overall, the black market has created an entirely new economy in many countries and it is an issue that needs to be addressed by governments worldwide.