# data[].attributes.body
A racket is a service that is fraudulently offered to solve a problem, such as for a problem that does not actually exist, that will not be put into effect, or that would not otherwise exist if the racket did not exist. Conducting a racket is racketeering.[35] Particularly, the potential problem may be caused by the same party that offers to solve it, although that fact may be concealed, with the specific intent to engender continual patronage for this party. An archetype is the protection racket, wherein a person or group (e.g., a criminal gang) indicates to a store owner that they could protect her/his store from potential damage, damage that the same person or group would otherwise inflict, while the correlation of threat and protection may be more or less deniably veiled, distinguishing it from the more direct act of extortion. Racketeering is often associated with organized crime, and the term was coined by the Employers' Association of Chicago in June 1927 in a statement about the influence of organized crime in the Teamsters union.[36]

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According to the World Health Organization (WHO), illegal organ trade occurs when organs are removed from the body for the purpose of commercial transactions.[32] The WHOjustifies its stance on the issue by stating, "Payment for ... organs is likely to take unfair advantage of the poorest and most vulnerable groups, undermines altruistic donation and leads to profiteering and human trafficking."[33] Despite these ordinances, it was estimated that 5% of all organ recipients engaged in commercial organ transplant in 2005.[34]Research indicates that illegal organ trade is on the rise, with a recent report by Global Financial Integrity estimating that the illegal organ trade generates profits between $600 million and $1.2 billion per year with a span over many countries.

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It has been reported that smuggling one truckload of cigarettes from a low-tax US state to a high-tax state can lead to a profit of up to $2 million.[28] The low-tax states are generally the major tobacco producers, and have come under enormous criticism for their reluctance to increase taxes. North Carolina eventually agreed to raise its taxes from 5 cents to 35 cents per pack of 20 cigarettes, although this remains far below the national average.[29] But South Carolina has so far refused to follow suit and raise taxes from seven cents per pack (the lowest in the USA).[30]

In the UK, it has been reported that "27% of cigarettes and 68% of roll your own tobacco is purchased on the black market".[31]

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Rum-running, or bootlegging, is the illegal business of transporting (smuggling) alcoholic beverages where such transportation is forbidden by law. Smuggling is usually done to circumvent taxation or prohibition laws within a particular jurisdiction. The term rum-running is more commonly applied to smuggling over water; bootlegging is applied to smuggling over land. According to the PBS documentary Prohibition, the term "bootlegging" was popularized when thousands of city dwellers would sell liquor from flasks they kept in their boot leg all across major cities and rural areas.[26][27] The term "rum-running" most likely originated at the start of Prohibition in the United States (1920–1933), when ships from Bimini in the western Bahamas transported cheap Caribbean rum to Florida speakeasies. But rum's cheapness made it a low-profit item for the rum-runners, and they soon moved on to smuggling Canadian whisky, French champagne, and English gin to major cities like New York City and Boston, where prices ran high. It was said that some ships carried $200,000 in contraband in a single run.

# data[].attributes.body
In many developing countries, living animals are captured in the wild and sold as pets. Wild animals are also hunted and killed for their meat, hide, and organs, the latter of which and other animal parts are sold for use in traditional medicine.

In several of the states within the United States, laws requiring the pasteurization of milk has created black market situations involving the transport and sale of raw milk, and sometimes raw milk cheese which is legal in a number of EU countries but banned in the US if aged less than 60 days[25]

# data[].attributes.body
The illegal logging of timber has posed as an issue. According to Interpol, the illegal logging industry is worth almost as much as drug production industry, in some countries.[23][24]

# data[].attributes.body
The legislatures of many countries forbid or restrict the personal ownership of weapons. These restrictions can range from small knives to firearms, either altogether or by classification (e.g. caliber, handguns, automatic weapons, and explosives). The black market supplies the demands for weaponry that can not be obtained legally, or may only be obtained legally after obtaining permits and paying fees. This may be by smuggling the arms from countries where they were bought legally or stolen, or by stealing from arms manufacturers within the country itself, using insiders. In cases where the underground economy is unable to smuggle firearms, they can also satisfy requests by gunsmithing their own firearms. Those who may buy this way include criminals to use for illegal activities, gun collectors, and otherwise law-abiding citizens interested in protecting their dwellings, families or businesses.

In England and Wales, certain categories of weapons used for hunting may be owned by qualified residents but must be registered with the local police force and kept within a locked cabinet. Another segment of the population who may purchase weapons on the black market are individuals who are unable to pass the legal requirements for registration—convicted felons or those suffering from mental illness for example. In a few jurisdictions, collectors may legally keep antique weapons made incapable of being readily restored to a firing condition.

# data[].attributes.body
From the late 19th and early 20th centuries, many countries began to ban the keeping or using of some recreational drugs, such as the United States' war on drugs. Many people nonetheless continue to use illegal drugs, and a black market exists to supply them. Despite law enforcement efforts to intercept them, demand remains high, providing a large profit motive for organized criminal groups to keep drugs supplied. The United Nations has reported that the retail market value of illegal drugs is $321.6 billion USD.[22]

Although law enforcement agencies intercept a fraction of the illegal drugs, and incarcerate hundreds of thousands of wholesale and retail sellers, the very stable demand for such drugs and the high profit margins encourages new distributors to enter the market without a decrease in the retail price. Many drug legalization activists draw parallels between the illegal drug trade and the Prohibition of alcohol in the United States in the 1920s.

# data[].attributes.body
Personally identifying information, financial information like credit card and bank account information, and medical data is bought and sold, mostly in darknet markets.[19][20] People increase the value of the stolen data by aggregating it with publicly available data, and sell it again for a profit, increasing the damage that can be done to the people whose data was stolen.[21]

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Traded Goods-Sexual exploitation and forced labor

# data[].attributes.subject
Traded Goods-Sexual exploitation and forced labor

# data[].attributes.body
Prostitution is illegal or highly regulated in many countries across the world. These places form a classic study of the underground economy, because of consistent high demand from customers, relatively high pay, but labor-intensive and low skilled work, which attracts a continual supply of workers. While prostitution exists in every country, studies show that it tends to flourish more in poorer countries, and in areas with large numbers of unattached men, such as around military bases.[17] For instance, an empirical study showed that the supply of prostitutes rose abruptly in Denver and Minneapolis in 2008 when the Democratic and Republican National Conventions took place there.[18]

Prostitutes in the black market generally operate with some degree of secrecy, sometimes negotiating prices and activities through codewords and subtle gestures. In countries such as Germany or the Netherlands, where prostitution is legal but regulated, illegal prostitutes exist whose services are offered cheaper without regard for the legal requirements or procedures—health checks, standards of accommodation, and so on.

In other countries, such as Nicaragua, where legal prostitution is regulated, hotels may require both parties to identify themselves, to prevent the rise of child prostitution.

# data[].attributes.body
Even when the underground market offers lower prices, consumers still have an incentive to buy on the legal market when possible, because:

They may prefer legal suppliers, as they are easier to contact and can be held accountable for faults;
In some jurisdictions, such as the United States, customers may be charged with a criminal offense if they knowingly participate in the black economy, even as a consumer;[15]
They may have a moral dislike of black marketing;
In some jurisdictions (such as England and Wales), consumers found to be in possession of stolen goods will have them taken away if they are traced, even if they did not know they were stolen. Though they themselves will not usually face criminal prosecution, they are still left without the goods they paid for and with little if any recourse to get their money back. This risk may make some averse to buying goods that they think may be from the underground market, even if in fact they are legitimate (for example, items sold at a car boot sale).
However, in some limited situations, consumers conclude that they are actually better off using black market services, particularly when government regulations hinder what would otherwise be a legitimate competitive service. For example:

Unlicensed taxicabs. In Baltimore, it has been reported that many consumers actively prefer illegal taxis, citing that they are more available, convenient, and priced fairly.[16]

# data[].attributes.body
Goods and services acquired illegally and/or transacted for in an illegal manner may exchange above or below the price of legal market transactions:

They may be cheaper than legal market prices. The supplier does not have to pay for production costs and/or taxes. This is usually the case in the underground economy. Criminals steal goods and sell them below the legal market price, but there is no receipt, guarantee, and so forth. When someone is hired to perform work and the client is unable to write off the expense (particularly common for work such as home renovations or cosmetological services), the client may be inclined to request a lower price (usually paid in cash) in exchange for foregoing a receipt, which enables the service provider to avoid reporting the income on his or her tax return.
They may be more expensive than legal market prices. For example, the product is difficult to acquire or produce, dangerous to handle, is strictly rationed, or not easily available legally if at all. If exchange of goods are made illegal by some sort of state sanction, such as is often seen with certain pharmaceutical drugs, their prices will tend to rise as a result of that sanction.

# data[].attributes.body
The literature on the black market has not established a common terminology and has instead offered many synonyms including: subterranean; hidden; grey; shadow; informal; clandestine; illegal; unobserved; unreported; unrecorded; second; parallel and black.[3]

There is no single underground economy; there are many. These underground economies are omnipresent, existing in market oriented as well as in centrally planned nations, be they developed or developing. Those engaged in underground activities circumvent, escape or are excluded from the institutional system of rules, rights, regulations and enforcement penalties that govern formal agents engaged in production and exchange. Different types of underground activities are distinguished according to the particular institutional rules that they violate. Four major underground economies can be identified:[3][6]

1. the illegal economy

2. the unreported economy

3. the unrecorded economy

4. the informal economy

The "illegal economy" consists of the income produced by those economic activities pursued in violation of legal statutes defining the scope of legitimate forms of commerce. Illegal economy participants engage in the production and distribution of prohibited goods and services, such as drug trafficking, arms trafficking, and prostitution.[6]

The "unreported economy" consists of those economic activities that circumvent or evade the institutionally established fiscal rules as codified in the tax code. A summary measure of the unreported economy is the amount of income that should be reported to the tax authority but is not so reported. A complementary measure of the unreported economy is the "tax gap", namely the difference between the amount of tax revenues due the fiscal authority and the amount of tax revenue actually collected. In the U.S. unreported income is estimated to be $2 trillion resulting in a "tax gap" of $450–$600 billion.[7][8]

The "unrecorded economy" consists of those economic activities that circumvent the institutional rules that define the reporting requirements of government statistical agencies.[6] A summary measure of the unrecorded economy is the amount of unrecorded income, namely the amount of income that should (under existing rules and conventions) be recorded in national accounting systems (e.g. National Income and Product Accounts) but is not. Unrecorded income is a particular problem in transition countries that switched from a socialist accounting system to UN standard national accounting. New methods have been proposed for estimating the size of the unrecorded (non-observed) economy.[9] But there is still little consensus concerning the size of the unreported economies of transition countries.[10]

The "informal economy" comprises those economic activities that circumvent the costs and are excluded from the benefits and rights incorporated in the laws and administrative rules covering property relationships, commercial licensing, labor contracts, torts, financial credit and social security systems.[6] A summary measure of the informal economy is the income generated by economic agents that operate informally.[11][page needed][12] The informal sector is defined as the part of an economy that is not taxed, monitored by any form of government, or included in any gross national product (GNP), unlike the formal economy. In developed countries the informal sector is characterized by unreported employment. This is hidden from the state for tax, social security or labour law purposes but is legal in all other aspects.[13] On the other hand, the term black market can be used in reference to a specific part of the economy in which contraband is traded.

# data[].attributes.headline
Info on The Black Market- What happens? How are transactions made? How does it operate? THIS SHEET IS ALL FROM WIKIPEDIA- I USED ALL OF THIS INFO TO MAKE MY FINAL PROJECT.

# data[].attributes.subject
Info on The Black Market- What happens? How are transactions made? How does it operate? THIS SHEET IS ALL FROM WIKIPEDIA- I USED ALL OF THIS INFO TO MAKE MY FINAL PROJECT.

# data[].attributes.body
When people trade on The Black Market, they use cash. They use cash because it has no footprint. That means you can't trace where it went. Most of the time when you buy something on The Black Market, it's illegal.
A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by some form of noncompliant behavior with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited by law, non-compliance with the rule constitutes a black market trade since the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the drug trade, prostitution (where prohibited), illegal currency transactions and human trafficking. Violations of the tax code involving income tax evasion constitute membership in the unreported economy.

Because tax evasion or participation in a black market activity is illegal, participants will attempt to hide their behavior from the government or regulatory authority. Cash usage is the preferred medium of exchange in illegal transactions since cash usage does not leave a footprint. Common motives for operating in black markets are to trade contraband, avoid taxes and regulations, or skirt price controls or rationing. Typically the totality of such activity is referred to with the definite article as a complement to the official economies, by market for such goods and services, e.g. "the black market in bush meat".

The black market is distinct from the grey market, in which commodities are distributed through channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer, and the white market, in which trade is legal and official.

Black money is the proceeds of an illegal transaction, on which income and other taxes have not been paid, and which can only be legitimised by some form of money laundering. Because of the clandestine nature of the black economy it is not possible to determine its size and scope.
The literature on the black market has not established a common terminology and has instead offered many synonyms including: subterranean; hidden; grey; shadow; informal; clandestine; illegal; unobserved; unreported; unrecorded; second; parallel and black.[3]

There is no single underground economy; there are many. These underground economies are omnipresent, existing in market oriented as well as in centrally planned nations, be they developed or developing. Those engaged in underground activities circumvent, escape or are excluded from the institutional system of rules, rights, regulations and enforcement penalties that govern formal agents engaged in production and exchange. Different types of underground activities are distinguished according to the particular institutional rules that they violate. Four major underground economies can be identified:[3][6]

1. the illegal economy

2. the unreported economy

3. the unrecorded economy

4. the informal economy

The "illegal economy" consists of the income produced by those economic activities pursued in violation of legal statutes defining the scope of legitimate forms of commerce. Illegal economy participants engage in the production and distribution of prohibited goods and services, such as drug trafficking, arms trafficking, and prostitution.[6]

The "unreported economy" consists of those economic activities that circumvent or evade the institutionally established fiscal rules as codified in the tax code. A summary measure of the unreported economy is the amount of income that should be reported to the tax authority but is not so reported. A complementary measure of the unreported economy is the "tax gap", namely the difference between the amount of tax revenues due the fiscal authority and the amount of tax revenue actually collected. In the U.S. unreported income is estimated to be $2 trillion resulting in a "tax gap" of $450–$600 billion.[7][8]

The "unrecorded economy" consists of those economic activities that circumvent the institutional rules that define the reporting requirements of government statistical agencies.[6] A summary measure of the unrecorded economy is the amount of unrecorded income, namely the amount of income that should (under existing rules and conventions) be recorded in national accounting systems (e.g. National Income and Product Accounts) but is not. Unrecorded income is a particular problem in transition countries that switched from a socialist accounting system to UN standard national accounting. New methods have been proposed for estimating the size of the unrecorded (non-observed) economy.[9] But there is still little consensus concerning the size of the unreported economies of transition countries.[10]

The "informal economy" comprises those economic activities that circumvent the costs and are excluded from the benefits and rights incorporated in the laws and administrative rules covering property relationships, commercial licensing, labor contracts, torts, financial credit and social security systems.[6] A summary measure of the informal economy is the income generated by economic agents that operate informally.[11][page needed][12] The informal sector is defined as the part of an economy that is not taxed, monitored by any form of government, or included in any gross national product (GNP), unlike the formal economy. In developed countries the informal sector is characterized by unreported employment. This is hidden from the state for tax, social security or labour law purposes but is legal in all other aspects.[13] On the other hand, the term black market can be used in reference to a specific part of the economy in which contraband is traded.

Pricing[edit]

Goods and services acquired illegally and/or transacted for in an illegal manner may exchange above or below the price of legal market transactions:

They may be cheaper than legal market prices. The supplier does not have to pay for production costs and/or taxes. This is usually the case in the underground economy. Criminals steal goods and sell them below the legal market price, but there is no receipt, guarantee, and so forth. When someone is hired to perform work and the client is unable to write off the expense (particularly common for work such as home renovations or cosmetological services), the client may be inclined to request a lower price (usually paid in cash) in exchange for foregoing a receipt, which enables the service provider to avoid reporting the income on his or her tax return.

They may be more expensive than legal market prices. For example, the product is difficult to acquire or produce, dangerous to handle, is strictly rationed, or not easily available legally if at all. If exchange of goods are made illegal by some sort of state sanction, such as is often seen with certain pharmaceutical drugs, their prices will tend to rise as a result of that sanction.

Consumer issues[edit]

No government, no global nonprofit, no multinational enterprise can seriously claim to be able to replace the 1.8 billion jobs created by the economic underground. In truth, the best hope for growth in most emerging economies lies in the shadows.
—Global Bazaar, Scientific American[14]

Even when the underground market offers lower prices, consumers still have an incentive to buy on the legal market when possible, because:

They may prefer legal suppliers, as they are easier to contact and can be held accountable for faults;

In some jurisdictions, such as the United States, customers may be charged with a criminal offense if they knowingly participate in the black economy, even as a consumer;[15]

They may have a moral dislike of black marketing;

In some jurisdictions (such as England and Wales), consumers found to be in possession of stolen goods will have them taken away if they are traced, even if they did not know they were stolen. Though they themselves will not usually face criminal prosecution, they are still left without the goods they paid for and with little if any recourse to get their money back. This risk may make some averse to buying goods that they think may be from the underground market, even if in fact they are legitimate (for example, items sold at a car boot sale).

However, in some limited situations, consumers conclude that they are actually better off using black market services, particularly when government regulations hinder what would otherwise be a legitimate competitive service. For example:

Unlicensed taxicabs. In Baltimore, it has been reported that many consumers actively prefer illegal taxis, citing that they are more available, convenient, and priced fairly.[16]

Traded goods and services[edit]

Some examples of underground economic activities include:

Sexual exploitation and forced labor[edit]

Main article: Human trafficking

Prostitution is illegal or highly regulated in many countries across the world. These places form a classic study of the underground economy, because of consistent high demand from customers, relatively high pay, but labor-intensive and low skilled work, which attracts a continual supply of workers. While prostitution exists in every country, studies show that it tends to flourish more in poorer countries, and in areas with large numbers of unattached men, such as around military bases.[17] For instance, an empirical study showed that the supply of prostitutes rose abruptly in Denver and Minneapolis in 2008 when the Democratic and Republican National Conventions took place there.[18]

Prostitutes in the black market generally operate with some degree of secrecy, sometimes negotiating prices and activities through codewords and subtle gestures. In countries such as Germany or the Netherlands, where prostitution is legal but regulated, illegal prostitutes exist whose services are offered cheaper without regard for the legal requirements or procedures—health checks, standards of accommodation, and so on.

In other countries, such as Nicaragua, where legal prostitution is regulated, hotels may require both parties to identify themselves, to prevent the rise of child prostitution.

Personal information[edit]

Personally identifying information, financial information like credit card and bank account information, and medical data is bought and sold, mostly in darknet markets.[19][20] People increase the value of the stolen data by aggregating it with publicly available data, and sell it again for a profit, increasing the damage that can be done to the people whose data was stolen.[21]

Illegal drugs[edit]

In the U.S., cannabis has been termed as a cash crop.

Main article: Illegal drug trade

From the late 19th and early 20th centuries, many countries began to ban the keeping or using of some recreational drugs, such as the United States' war on drugs. Many people nonetheless continue to use illegal drugs, and a black market exists to supply them. Despite law enforcement efforts to intercept them, demand remains high, providing a large profit motive for organized criminal groups to keep drugs supplied. The United Nations has reported that the retail market value of illegal drugs is $321.6 billion USD.[22]

Although law enforcement agencies intercept a fraction of the illegal drugs, and incarcerate hundreds of thousands of wholesale and retail sellers, the very stable demand for such drugs and the high profit margins encourages new distributors to enter the market without a decrease in the retail price. Many drug legalization activists draw parallels between the illegal drug trade and the Prohibition of alcohol in the United States in the 1920s.

Weapons[edit]

Main article: Arms trafficking

A tower of confiscated smuggled weapons about to be set ablaze in Nairobi, Kenya

The legislatures of many countries forbid or restrict the personal ownership of weapons. These restrictions can range from small knives to firearms, either altogether or by classification (e.g. caliber, handguns, automatic weapons, and explosives). The black market supplies the demands for weaponry that can not be obtained legally, or may only be obtained legally after obtaining permits and paying fees. This may be by smuggling the arms from countries where they were bought legally or stolen, or by stealing from arms manufacturers within the country itself, using insiders. In cases where the underground economy is unable to smuggle firearms, they can also satisfy requests by gunsmithing their own firearms. Those who may buy this way include criminals to use for illegal activities, gun collectors, and otherwise law-abiding citizens interested in protecting their dwellings, families or businesses.

In England and Wales, certain categories of weapons used for hunting may be owned by qualified residents but must be registered with the local police force and kept within a locked cabinet. Another segment of the population who may purchase weapons on the black market are individuals who are unable to pass the legal requirements for registration—convicted felons or those suffering from mental illness for example. In a few jurisdictions, collectors may legally keep antique weapons made incapable of being readily restored to a firing condition.

Illegally logged timber[edit]

Main article: Illegal logging

The illegal logging of timber has posed as an issue. According to Interpol, the illegal logging industry is worth almost as much as drug production industry, in some countries.[23][24]

Animals and animal products[edit]

Main articles: Ivory trade and Wildlife trade

In many developing countries, living animals are captured in the wild and sold as pets. Wild animals are also hunted and killed for their meat, hide, and organs, the latter of which and other animal parts are sold for use in traditional medicine.

In several of the states within the United States, laws requiring the pasteurization of milk has created black market situations involving the transport and sale of raw milk, and sometimes raw milk cheese which is legal in a number of EU countries but banned in the US if aged less than 60 days[25]

Alcohol[edit]

Main article: Rum-running

Broken barrels of liquor after a police raid in 1925, in Elk Lake, Ontario

Rum-running, or bootlegging, is the illegal business of transporting (smuggling) alcoholic beverages where such transportation is forbidden by law. Smuggling is usually done to circumvent taxation or prohibition laws within a particular jurisdiction. The term rum-running is more commonly applied to smuggling over water; bootlegging is applied to smuggling over land. According to the PBS documentary Prohibition, the term "bootlegging" was popularized when thousands of city dwellers would sell liquor from flasks they kept in their boot leg all across major cities and rural areas.[26][27] The term "rum-running" most likely originated at the start of Prohibition in the United States (1920–1933), when ships from Bimini in the western Bahamas transported cheap Caribbean rum to Florida speakeasies. But rum's cheapness made it a low-profit item for the rum-runners, and they soon moved on to smuggling Canadian whisky, French champagne, and English gin to major cities like New York City and Boston, where prices ran high. It was said that some ships carried $200,000 in contraband in a single run.

Tobacco[edit]

It has been reported that smuggling one truckload of cigarettes from a low-tax US state to a high-tax state can lead to a profit of up to $2 million.[28] The low-tax states are generally the major tobacco producers, and have come under enormous criticism for their reluctance to increase taxes. North Carolina eventually agreed to raise its taxes from 5 cents to 35 cents per pack of 20 cigarettes, although this remains far below the national average.[29] But South Carolina has so far refused to follow suit and raise taxes from seven cents per pack (the lowest in the USA).[30]

In the UK, it has been reported that "27% of cigarettes and 68% of roll your own tobacco is purchased on the black market".[31]

Biological organs[edit]

Main article: Organ trade § Illegal organ trade

According to the World Health Organization (WHO), illegal organ trade occurs when organs are removed from the body for the purpose of commercial transactions.[32] The WHOjustifies its stance on the issue by stating, "Payment for ... organs is likely to take unfair advantage of the poorest and most vulnerable groups, undermines altruistic donation and leads to profiteering and human trafficking."[33] Despite these ordinances, it was estimated that 5% of all organ recipients engaged in commercial organ transplant in 2005.[34]Research indicates that illegal organ trade is on the rise, with a recent report by Global Financial Integrity estimating that the illegal organ trade generates profits between $600 million and $1.2 billion per year with a span over many countries.

Racketeering[edit]

Main article: Racket (crime)

A racket is a service that is fraudulently offered to solve a problem, such as for a problem that does not actually exist, that will not be put into effect, or that would not otherwise exist if the racket did not exist. Conducting a racket is racketeering.[35] Particularly, the potential problem may be caused by the same party that offers to solve it, although that fact may be concealed, with the specific intent to engender continual patronage for this party. An archetype is the protection racket, wherein a person or group (e.g., a criminal gang) indicates to a store owner that they could protect her/his store from potential damage, damage that the same person or group would otherwise inflict, while the correlation of threat and protection may be more or less deniably veiled, distinguishing it from the more direct act of extortion. Racketeering is often associated with organized crime, and the term was coined by the Employers' Association of Chicago in June 1927 in a statement about the influence of organized crime in the Teamsters union.[36]

Transportation providers[edit]

Main article: illegal taxicab operation

Where taxicabs, buses, and other transportation providers are strictly regulated or monopolized by government, a black market typically flourishes to provide transportation to poorly served or overpriced communities. In the United States, some cities restrict entry to the taxicab market with a medallion system, i.e., taxicabs must get a special license and display it on a medallion in the vehicle. In most such jurisdictions it is legal to sell the medallions, but the limited supply and resulting high prices of medallions have led to a market in unlicensed carpooling/illegal taxicab operation. In Baltimore, Maryland, for example, it is not uncommon for private individuals to provide illegal taxicab service[16] for city residents.

Housing rental[edit]

In places where there is rent control there may be a black market for housing. For instance, in the UK there is illegal subletting of social housing homes where the tenant illegally rents out the home at a higher rent.[37] In Sweden, rental contracts with regulated rent can be bought on the black market,[38] either from the current tenant or sometimes directly from the property owner. Specialised black-market dealers assist the property owners with such transactions.[39] In India, places like Chennai, Bangalore, Hyderabad, Mumbai, Kolkotta, and New Delhi where students are coming from all over India, getting high rented PG (paying guests) or other forms of rented apartments without any taxation or regulations.

Counterfeit medicine, essential aircraft and automobile parts[edit]

Main article: Counterfeit consumer goods

Medicines and essential aircraft and automobile parts (e.g. brakes, motor parts, etc.) are counterfeited on a large scale.

Copyrighted media[edit]

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Main article: Copyright infringement

Street vendors in countries where there is little enforcement of copyright law, particularly in Asia and Latin America, often sell deeply discounted copies of films, music CDs, and computer software such as video games, sometimes even before the official release of the title. A determined counterfeiter with a few hundred dollars can make copies that are digitally identical to an original and face no loss in quality; innovations in consumer DVD and CD writers and the widespread availability of cracks on the Internet for most forms of copy protection technology make this cheap and easy to do.

Copyright-holders and other proponents of copyright laws have found this phenomenon hard to stop through the courts, as the operations are distributed and widespread,[citation needed] transversing national borders and thus legal systems. Since digital information can be duplicated repeatedly with no loss of quality, and passed on electronically at little to no cost, the effective underground market value of media is zero, differentiating it from nearly all other forms of underground economic activity. The issue is compounded by widespread indifference to enforcing copyright law, both with governments and the public at large. To steal a car is seen as a crime in most people's eyes, but to obtain unauthorized copies of music or a game is not.[40] Additionally, not all people agree with 'copyright laws', as it unfairly criminalises competition, allowing the copyright-holder to effectively monopolise related industries. It also authorises copyright-holders to use region-coding to discriminate against selected populations price-wise and availability-wise.

The comparison to car-theft, although common, is not truly analogous. Automobile theft results in an item being removed from the owner with the ownership transferred to a second party. Media piracy is a crime of duplication, with no physical property being stolen. Copyright infringement law goes as far as to deem illegal "mixtapes" and other such material copied to tape or disk. Copyright holders typically attest the act of theft to be in the profits forgone to the pirates. However, this makes the unsubstantiated assumption that the pirates would have bought the copyrighted material if it had not been available through file sharing or other means. Copyright holders also say that they did some work for creating their copyrighted material and they wish to get compensated for their work. No other system than copyright has been found to compensate the artists and other creators for their work[citation needed], and many artists do not have any alternative source of income or another job. Many artists and film producers have accepted the role of piracy in media distribution.[41] The spread of material through file sharing is a major source of publicity for artists and has been shown to build fan bases that may be more inclined to see the performer live[42] (live performances make up the bulk of successful artists' revenues,[43] however not all artists can make live performances, for example photographers typically only have a single source of income that is the licensing of their photos).

Currency[edit]

Main article: Fixed exchange rate

Money itself is traded on the black market. This may happen for one or more of several reasons:

The government sets ("pegs") the local currency at some arbitrary level to another currency that does not reflect its true market value.

A government makes it difficult or illegal for its citizens to own much or any foreign currency.

The government taxes exchanging the local currency with other currencies, either in one direction or both (e.g. foreigners are taxed to buy local currency, or residents are taxed to buy foreign currency).

The currency is counterfeit.

The currency has been acquired illegally and needs to be laundered before the money can be used.[44]

A government may officially set the rate of exchange of its currency with that of other currencies, typically the US dollar. When it does, the peg often overvalues the local currency relative to what its market value would be if it were a floating currency. Those in possession of the "harder" currency, for example expatriate workers, may be able to use the black market to buy the local currency at better exchange rates than they can get officially.

In situations of financial instability and inflation, citizens may substitute a foreign currency for the local currency. The U.S. dollar is viewed as a relatively stable and safe currency and is often used abroad as a second currency. In 2012, $340 billion, roughly 37 percent[45] of all U.S. currency, was believed to be circulating abroad.[46] The most recent study of the amount of currency held overseas suggests that only 25 percent of U.S. currency is presently held abroad.[47] The widespread substitution of U.S. currency for local currency is known as de facto dollarisation, and has been observed in transition countries such as Cambodia[48] and in some Latin American countries.[49] Some countries, such as Ecuador, abandoned their local currency and now use US dollars, essentially for this reason, a process known as de jure dollarization. See also the example of the Ghanaian cedi from the 1970s and 1980s.

If foreign currency is difficult or illegal for local citizens to acquire, they will pay a premium to acquire it. U.S. currency is viewed as a relatively stable store of value and since it does not leave a paper trail,[dubious – discuss] it is also a convenient medium of exchange for both illegal transactions and for unreported income both in the U.S and abroad.[50]

More recently cryptocurrencies such as bitcoin have been used as medium of exchange in black market transactions. Cryptocurrencies are sometimes favored over centralized currency due to their anonymous nature and their ability to be traded over the internet.[51]

Fuel[edit]

In the EU, it is not illegal for a person or business to buy fuel in one EU state for their own use in another, but as with other goods the tax will generally be payable by the final customer at the physical place of making the purchase.[citation needed]

Between the Republic of Ireland and Northern Ireland, there has often been a black market in petrol and diesel.[52][53] The direction of smuggling can change depending on the variation of the taxes and the exchange rate between the Euro and Pound Sterling; indeed sometimes diesel will be smuggled in one direction and petrol the other.[citation needed]

In some countries, diesel fuel for agricultural vehicles or domestic use is taxed at a much lower rate than that for other vehicles. This is known as dyed fuel, because a coloured dye is added so it can be detected if used in other vehicles (e.g. a red dye in the UK, a green dye in Ireland). Nevertheless, the saving is attractive enough to make a black market in agricultural diesel. In 2007 it was estimated that £350 million was not gained in profit as a result of this phenomenon, in the UK.[54]

In countries like India and Nepal, the price of fuel is set by the government, and it is illegal to sell the fuel over the set price. Due to the petrol crisis in Nepal, black marketing in fuel has been a common trend, especially during mass petrol shortage. At times, people need to queue for hours or even sometimes overnight to get the fuel. On the other hand, the petrol pump operators are alleged to hoarding the fuel, and selling it to black marketers. Black marketing in vehicle/cooking fuel became widespread during the 2015 economic blockade imposed on Nepal. Even after the economic blockade was eased, and petrol imports resumed, people are not getting the fuel as they were supposed to and are resort to buying from the black market.

Organized crime[edit]

Main article: Organized crime

People engaged in the black market usually run their business hidden under a front business that is legal.

Often, certain types of illegal products are traded against one another, depending on the geographical location.[55]

Causes[edit]

Wars[edit]

Black markets flourish in most countries during wartime. States that are engaged in total war or other large-scale, extended wars often impose restrictions on home use of critical resources that are needed for the war effort, such as food, gasoline, rubber, metal, etc., typically through rationing. In most cases, a black market develops to supply rationed goods at exorbitant prices. The rationing and price controls enforced in many countries during World War II encouraged widespread black market activity.[56] One source of black-market meat under wartime rationing was by farmers declaring fewer domestic animal births to the Ministry of Food than actually happened. Another in Britain was supplies from the US, intended only for use in US army bases on British land, but leaked into the local native British black market.

For example, in the Parliament of the United Kingdom on February 17, 1945,[57] members said that "the whole turkey production of East Anglia had gone to the black market" and "prosecutions [for black-marketing] were like trying to stop a leak in a battleship", and it was said that official prices of such foods were set so low that their producers often sold their produce on the black market for higher prices; one such route (seen to operate at the market at Diss in Norfolk) was to sell live poultry to members of the public, and each purchaser would sign a form promising that he was buying the birds to breed from, and then take them home for eating.

During the Vietnam war, soldiers would spend Military Payment Certificates on maid service and sexual entertainment,[citation needed] thus supporting their partners and their families. If the Vietnamese civilian wanted something that was hard to get, he would buy it at double the price from one of the soldiers, who had a monthly ration card and thus had access to the military stores.[citation needed] The transactions ran through the on-base maids to the local populace. Although these activities were illegal, only flagrant or large-scale black-marketeers were prosecuted by the military.[citation needed]

Laws and regulations[edit]

A classic example of new regulation creating a black market is the prohibition of alcohol. Similarly, when the law disappears, so does the black market, which is why of the arguments for marijuana legalization is the elimination of the black market and thus taxes from that economy being used by the government.

Black markets by country[edit]

India[edit]

Further information: Indian black money; Corruption in India; and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Bill, 2015

In India, "black money" refers to funds earned on the black market, on which income and other taxes have not been paid. The black money market situation in India is epidemic. India currently tops the list for illegal monies in the entire world, estimated to be almost US$1,456 billion stored in Swiss banks in the form of unaccounted money.[58] According to the data provided by the Swiss Banking Association, India has more black money than the rest of the world combined.[59][60][61] Indian Swiss bank account assets are worth 13 times (1300%) the country’s national debt, and, if this black money is seized and brought back to the country, India has the potential to become one of the richest countries in the world.[62]Allegations of Indians holding trillions in black money in Switzerland are, however, in dispute. Later reports, including those by Swiss Bankers Association and the Government of Switzerland, claim that these allegations are false and fabricated, and the total amount held in all Swiss banks by citizens of India is about US$2 billion.[63][64]

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Prices of guns on The Black Market- Gives a look on what actually happens

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Prices of guns on The Black Market- Gives a look on what actually happens

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AK-47 and Other Guns on the Black Market

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Prices of the firearms, guns and other weapons are collected from various publicly available sources. The sale price of the weapon is quoted in US dollars. Click on the price of the firearm for the original post and source information.

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A black market in Shinbashi in 1946

Barcelona 2015

A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited or restricted by law, non-compliance with the rule constitutes a black-market trade since the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the legal drug trade, prostitution (where prohibited), illegal currency transactions, and human trafficking. Violations of the tax code involving income tax evasion constitute membership in the unreported economy.

Because tax evasion or participation in a black-market activity is illegal, participants attempt to hide their behavior from the government or regulatory authority. Cash is the preferred medium of exchange in illegal transactions since cash transactions are less-easily traced. Common motives for operating in black markets are to trade contraband, avoid taxes and regulations, or skirt price controls or rationing. Typically, the totality of such activity is referred to with the definite article, e.g., " the black market in bush meat".

The black market is distinct from the grey market, in which commodities are distributed through channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer, and the white market, in which trade is legal and official.

Black money is the proceeds of an illegal transaction, on which income and other taxes have not been paid, and which can only be legitimised by some form of money laundering. Because of the clandestine nature of the black economy, it is not possible to determine its size and scope.

Mercado Negro, so called "Black Market", in La Paz, Bolivia

The literature on the black market has not established a common terminology and has instead offered many synonyms including: subterranean, hidden, grey, shadow, informal, clandestine, illegal, unobserved, unreported, unrecorded, second, parallel, and black.

There is no single underground economy; there are many. These underground economies are omnipresent, existing in market-oriented as well as in centrally planned nations, be they developed or developing. Those engaged in underground activities circumvent, escape, or are excluded from the institutional system of rules, rights, regulations, and enforcement penalties that govern formal agents engaged in production and exchange. Different types of underground activities are distinguished according to the particular institutional rules that they violate:

1. The illegal economy

2. The unreported economy

3. The unrecorded economy

4. The informal economy

The "illegal economy" consists of economic activities pursued in violation of legal statutes that define the scope of legitimate forms of commerce. Illegal-economy participants produce and distribute prohibited goods and services, such as drugs, weapons, and prostitution.

The "unreported economy" circumvents or evades institutionally established fiscal rules as codified in the tax code. A summary measure of the unreported economy is the amount of income that should be reported to the tax authority but is not so reported. A complementary measure of the unreported economy is the " tax gap": the difference between the amount of tax revenues due the fiscal authority and the amount of tax revenue actually collected. In the U.S. unreported income is estimated to be $2 trillion resulting in a "tax gap" of $450-600 billion.

The "unrecorded economy" circumvents the institutional rules that define the reporting requirements of government statistical agencies. A summary measure of the unrecorded economy is the amount of unrecorded income, namely the amount of income that should (under existing rules and conventions) be recorded in national accounting systems (e.g., National Income and Product Accounts) but is not. Unrecorded income is a particular problem in transition countries that switched from a socialist accounting system to UN standard national accounting. New methods have been proposed for estimating the size of the unrecorded (non-observed) economy. But little consensus exists on the size of the unreported economies of transitional countries.

The " informal economy" circumvents the costs of, and is excluded from the benefits and rights incorporated in, the laws and administrative rules covering property relationships, commercial licensing, labor contracts, torts, financial credit, and social security systems. A summary measure of the informal economy is the income generated by economic agents that operate informally. The informal sector is the part of an economy that is not taxed, monitored by government, or included in gross national product (GNP), unlike the formal economy. In developed countries the informal sector is characterized by unreported employment. This is hidden from the state for tax, social security, or labour law purposes but is legal in other aspects.

The term black market can also be used in reference to a specific part of the economy in which contraband is traded.

Goods and services acquired illegally and/or transacted for in an illegal manner may exchange above or below the price of legal market transactions:

They may be cheaper than legal market prices. The supplier does not have to pay for production costs and/or taxes. This is usually the case in the underground economy. Criminals steal goods and sell them below the legal market price, but there is no receipt, guarantee, and so forth. When someone is hired to perform work and the client is unable to write off the expense (particularly common for work such as home renovations or cosmetological services), the client may be inclined to request a lower price (usually paid in cash) in exchange for foregoing a receipt, which enables the service provider to avoid reporting the income on his or her tax return.

They may be more expensive than legal market prices. For example, if the product is difficult to acquire or produce, dangerous to handle, is strictly rationed, or is not easily available legally if at all. If exchange of goods is made illegal by some sort of state sanction, such as with certain drugs or wildlife trafficking, their prices will tend to rise as a result of that sanction.

No government, no global nonprofit, no multinational enterprise can seriously claim to be able to replace the 1.8 billion jobs created by the economic underground. In truth, the best hope for growth in most emerging economies lies in the shadows.

Even when the underground market offers lower prices, consumers may still buy on the legal market when possible, because:

They may prefer legal suppliers, as these are strictly regulated and easier to contact. In contrast, black market vendors are unregulated and difficult to hold accountable;

In some jurisdictions such as the United States, customers may be charged with a criminal offense if they knowingly participate in the black economy, even as a consumer;

They may have a moral dislike of black marketing;

In some jurisdictions such as England and Wales, consumers found in possession of stolen goods can have them confiscated if they are traced, even if they did not know they were stolen. Though they themselves do not usually face criminal prosecution, they are still left without the goods they paid for and have little if any recourse to get their money back. This may make some averse to buying goods that they think may be from the underground market, even if in fact they are legitimate (for example, items sold at a car boot sale).

However, in some situations, consumers may conclude that they are better off using black market services, particularly when government regulations hinder what would otherwise be a legitimate competitive service. For example, in Baltimore, many consumers actively prefer illegal taxi cabs, citing that they are more available, convenient, and fairly priced.

Some examples of underground economic activities include:

Prostitution is illegal or highly regulated in many countries. This demonstrates the underground economy, because of consistent high demand from customers, relatively high pay, but labor-intensive and low-skilled work, which attracts a continual supply of workers. While prostitution exists in every country, studies show that it tends to flourish more in poorer countries, and in areas with large numbers of unattached men, such as around military bases. For instance, an empirical study showed that the supply of prostitutes rose abruptly in Denver and Minneapolis in 2008 when the Democratic and Republican National Conventions took place there.

Prostitutes in the black market generally operate with some degree of secrecy, sometimes negotiating prices and activities through codewords and subtle gestures. In countries such as Germany or the Netherlands, where prostitution is legal but regulated, illegal prostitutes exist whose services are offered more cheaply without regard for the legal requirements or procedures-health checks, standards of accommodation, and so on.

In other countries, such as Nicaragua, where legal prostitution is regulated, hotels may require both parties to identify themselves, to prevent child prostitution.

Personally identifying information, financial information like credit card and bank account information, and medical data is bought and sold, mostly in darknet markets. People increase the value of the stolen data by aggregating it with publicly available data, and sell it again for a profit, increasing the damage that can be done to the people whose data was stolen.

In the U.S., cannabis has been termed as a cash crop.

From the late 19th and early 20th centuries, many countries began to ban the possession or use of some recreational drugs, such as in the United States' war on drugs. Many people nonetheless continue to use illegal drugs, and a black market exists to supply them. Despite law enforcement efforts to intercept them, demand remains high, providing a large profit motive for organized criminal groups to keep drugs supplied. The United Nations has reported that the retail market value of illegal drugs is $482 billion.

Although law enforcement agencies intercept a fraction of drug traffickers and incarcerate thousands of wholesale and retail sellers and users, the demand for such drugs and profit margins encourage new distributors to enter the market. Drug legalization activists draw parallels between the illegal drug trade and the Prohibition of alcohol in the United States in the 1920s.

A tower of confiscated smuggled weapons about to be incinerated in Nairobi, Kenya

The laws of many countries forbid or restrict the personal ownership of weapons. These restrictions can range from small knives to firearms, either altogether or by classification (e.g., caliber, handguns, automatic weapons, and explosives). The black market supplies the demands for weaponry that cannot be obtained legally or may only be obtained legally after obtaining permits and paying fees. This may be by smuggling the arms from countries where they were bought legally or stolen, or by stealing from arms manufacturers within the country itself, using insiders. In cases where the underground economy is unable to smuggle firearms, they can also satisfy requests by gunsmithing their own firearms. Those who may buy this way include criminals to use for illegal activities, gun collectors, and otherwise law-abiding citizens interested in protecting their dwellings, families, or businesses.

In England and Wales, certain categories of weapons used for hunting may be owned by qualified residents but must be registered with the local police force and kept within a locked cabinet. Among those who may purchase weapons on the black market are people who are unable to pass the legal requirements for registration-convicted felons or those suffering from mental illness for example.

The illegal logging of timber, according to Interpol, is an industry worth almost as much as the drug production industry in some countries.

In many developing countries, living animals are captured in the wild and sold as pets. Wild animals are also hunted and killed for their meat, hide, and organs, the latter of which and other animal parts are sold for use in traditional medicine.

In several states in the United States, laws requiring the pasteurization of milk have created black markets in raw milk, and sometimes in raw-milk cheese which is legal in a number of EU countries but banned in the U.S. if aged less than 60 days.

Broken barrels of liquor after a police raid in 1925, in Elk Lake, Ontario

Rum-running, or bootlegging, is the illegal business of transporting ( smuggling) alcoholic beverages where such transportation is forbidden by law. Smuggling is usually done to circumvent taxation or prohibition laws. The term rum-running is more commonly applied to smuggling over water; bootlegging is applied to smuggling over land. According to the PBS documentary Prohibition, the term "bootlegging" was popularized when thousands of city dwellers would sell liquor from flasks they kept in their boot leg all across major cities and rural areas. The term "rum-running" most likely originated at the start of Prohibition in the United States (1920-1933), when ships from Bimini in the western Bahamas transported cheap Caribbean rum to Florida speakeasies. Rum's cheapness made it a low-profit item for the rum-runners, and they moved on to smuggling Canadian whisky, French champagne, and English gin to major cities like New York City and Boston, where prices ran high. It was said that some ships carried $200,000 (roughly equivalent to U$4.5 million in 2022 ) in contraband in a single run.

United Kingdom

The United Kingdom has some of the highest taxes on tobacco products in the world and strict limits on the amount of tobacco that can be imported duty-free from other countries, leading to widespread attempts to smuggle relatively cheap tobacco from low tax countries into the U.K. Such smuggling efforts range from vacationers concealing relatively small quantities of tobacco in their luggage to large-scale enterprises linked to organized crime. British authorities have aggressively tried to detect and confiscate such illegal imports, and to prosecute those caught. Nevertheless, it has been reported that "27% of cigarettes and 68% of roll your own tobacco is purchased on the black market".

United States

Smuggling one truckload of cigarettes from a low-tax U.S. state to a high-tax state can result in a profit of up to $3 million. Because traffic crossing U.S. state borders is not usually stopped or inspected to the same extent as happens at the country's international borders, interdicting this sort of smuggling (especially without causing major disruption to interstate commerce) is difficult. Low-tax states are generally the major tobacco producers, and have come under criticism for their reluctance to increase taxes. North Carolina eventually agreed to raise its taxes from 5 cents to 35 cents per pack of 20 cigarettes, although this remains far below the national average. As of 2010, South Carolina has refused to follow suit and raise taxes from seven cents per pack (the lowest in the USA).

According to the World Health Organization (WHO), illegal organ trade occurs when organs are removed from the body for the purpose of commercial transactions. The WHO justifies its stance on the issue by stating, "Payment for... organs is likely to take unfair advantage of the poorest and most vulnerable groups, undermines altruistic donation and leads to profiteering and human trafficking." Despite prohibitions, it was estimated that 5% of all organ recipients engaged in commercial organ transplant in 2005. Research indicates that illegal organ trade is on the rise, with a recent report by Global Financial Integrity estimating that the illegal organ trade generates profits between $600 million and $1.2 billion per year across many countries.

A racket is a service that is fraudulently offered to solve a problem, such as for a problem that does not actually exist or that would not otherwise exist if the racket did not exist. Conducting a racket is called racketeering. The potential problem may be caused by the same party that offers to solve it, although that fact may be concealed, with the intent to engender continual patronage for the racketeer. An archetype is the protection racket, wherein a person or group (e.g., a criminal gang) indicates to a store owner that they could protect her/his store from potential damage, damage that the same person or group would otherwise inflict, while the correlation of threat and protection may be more or less deniably veiled, distinguishing it from the more direct act of extortion. Racketeering is often associated with organized crime. The term was coined by the Employers' Association of Chicago in June 1927 in a statement about the influence of organized crime in the Teamsters union.

Where taxicabs, buses, and other transportation providers are strictly regulated or monopolized by government, a black market typically flourishes to provide transportation to poorly served or overpriced communities. In the United States, some cities restrict entry to the taxicab market with a medallion system (taxicabs must get a special license and display it on a medallion in the vehicle). In most such jurisdictions it is legal to sell the medallions, but the limited supply and resulting high prices of medallions have led to a market in unlicensed carpooling/ illegal taxicab operation. In Baltimore, Maryland, for example, it is not uncommon for private individuals to provide illegal taxicab service for city residents.

In places where there is rent control and subsidized affordable housing, which provide housing below the market cost, there may be a black market for housing rentals. For instance, in the UK there is illegal subletting of social housing homes where the tenant illegally rents out the government-subsidized home at a higher rent. In Sweden, rental contracts with regulated rent can be bought on the black market, either from the current tenant or sometimes directly from the property owner. Specialised black-market dealers assist the property owners with such transactions.

Counterfeit medicine, essential aircraft and automobile parts

Items such as medicines as well as essential aircraft and automobile parts (e.g. brakes, motor parts, etc.) are counterfeited on a large scale.

A street vendor in Thailand has set up a display of illegal copies of DVD movies.

Street vendors in countries where there is little enforcement of copyright law, particularly in Asia and Latin America, often sell copies of films, music CDs, and computer software such as video games, sometimes even before the official release of the title. A determined counterfeiter with a few hundred dollars can make copies that are digitally identical to an original with no loss in quality; innovations in consumer DVD and CD writers and the widespread availability of cracks on the Internet for most forms of copy protection technology make this cheap and easy to do. Copyright-holders and other proponents of copyright laws have found this phenomenon hard to stop through the courts, as the operations are distributed and widespread, traversing national borders and thus legal systems. Since digital information can be duplicated repeatedly with no loss of quality, and passed on electronically at little to no cost, the effective underground market value of media is zero, differentiating it from nearly all other forms of underground economic activity. The issue is compounded by widespread indifference to enforcing copyright law, both with governments and the public at large. Additionally, not all people agree with copyright laws, on the grounds that they unfairly criminalize competition, allowing the copyright-holder to effectively monopolize related industries. Copyright-holders also may use region-coding to discriminate against selected populations price-wise and availability-wise.

Copyright infringement law goes as far as to deem illegal " mixtapes" and other such material copied to tape or disk. Copyright holders typically attest the act of theft to be in the profits forgone to the pirates. However, this makes the unsubstantiated assumption that the pirates would have bought the copyrighted material if it had not been available through file sharing or other means. Copyright holders also say that they did work creating their copyrighted material and they wish to get compensated for their work. No other system than copyright has been found to compensate artists and other creators for their work, and many artists do not have an alternative source of income or another job. Many artists and film producers have accepted the role of piracy in media distribution. The spread of material through file sharing is a source of publicity for artists and builds fan bases that may be inclined to see the performer live (live performances make up the bulk of successful artists' revenues, however not all artists can make live performances, for example photographers typically only have a single source of income: the licensing of their photos).

Money itself may be subject to a black market. Money may be exchangeable for a differing amount of the same currency if it has been acquired illegally and needs to be laundered before the money can be used. Counterfeit money may be sold for a lesser amount of genuine currency.

The rate of exchange between a local and foreign currency may be subject to a black market, often described as a " parallel exchange rate" or similar terms. This may happen for one or more of several reasons:

The government sets ("pegs") the local currency at some arbitrary level to another currency that does not reflect its true market value. Certain purchases of foreign currency may be permitted at the official rate; otherwise a less favourable black market rate applies.

A government makes it difficult or illegal for its citizens to own much or any foreign currency.

The government taxes officially exchanging the local currency for another currency, or vice versa.

A government may officially set the rate of exchange of its currency with that of other, "harder" currencies. When it does so, the peg may overvalue the local currency relative to what its market value would be if it were a floating currency. Those in possession of the harder currency, for example expatriate workers, may be able to use the black market to buy the local currency at better exchange rates than they can get officially.

In situations of financial instability and inflation, citizens may substitute a foreign currency for the local currency. The U.S. dollar is viewed as a relatively stable and safe currency and is often used abroad as a second currency. In 2012, US$340 billion, roughly 37 percent of all U.S. currency, was believed to be circulating abroad. The most recent study of the amount of currency held overseas suggests that only 25 percent of U.S. currency was held abroad in 2014. The widespread substitution of U.S. currency for local currency is known as de facto dollarisation, and has been observed in transition countries such as Cambodia and in some Latin American countries. Some countries, such as Ecuador, abandoned their local currency and use U.S. dollars, essentially for this reason, a process known as de jure dollarization. (See also the example of the Ghanaian cedi from the 1970s and 1980s.)

If foreign currency is difficult or illegal for local citizens to acquire, they will pay a premium to acquire it. U.S. currency is viewed as a relatively stable store of value and, since it does not leave a paper trail,[dubious ] it is also a convenient medium of exchange for both illegal transactions and for unreported income both in the U.S and abroad.

More recently cryptocurrencies such as bitcoin have been used as a medium of exchange in black market transactions. Cryptocurrencies are sometimes favored over centralized currency due to their pseudonymous nature and their ability to be traded over the Internet.

A black market fuel vendor in Tunisia sells smuggled gasoline to a passerby at a roadside stand.

In the EU, it is not illegal for a person or business to buy fuel in one EU state for their own use in another, but as with other goods the tax will generally be payable by the final customer at the physical place of making the purchase.

Between the Republic of Ireland and Northern Ireland, there has often been a black market in petrol and diesel. The direction of smuggling can change depending on variation in the taxes and the exchange rate between the Republic's euro (and previously punt) and Northern Ireland's pound sterling; indeed sometimes diesel will be smuggled in one direction and petrol the other.

In some countries, diesel fuel for agricultural vehicles or domestic use is taxed at a much lower rate than that for other vehicles. This is known as dyed fuel, because a coloured dye is added so it can be detected if used in other vehicles (e.g. a red dye in the UK, a green dye in Ireland). The saving is attractive enough to make for a black market in agricultural diesel, which was estimated in 2007 to cost the UK £350 million annually in lost tax.

In countries including India and Nepal, the price of fuel is set by the government, and it is illegal to sell the fuel at a higher price. During the petrol crisis in Nepal, black marketing in fuel became common, especially during mass petrol shortage. At times, people queued for hours or even overnight to get fuel. Petrol pump operators were alleged to hoard the fuel and sell it to black marketeers. Black marketing in vehicle/cooking fuel became widespread during the 2015 Nepal blockade; even after it was eased and petrol imports resumed, people were not getting the fuel as intended, and resorted to the black market.

In some countries including Saudi Arabia, Thailand, and India sex toys are illegal, and are sold illegally, without compliance with regulations on safety, etc. Platforms used to sell sex toys on the black market include consumer-to-consumer online auction websites and private pages on social media websites. In black market venues in Cambodia, sex toys have been seized alongside aphrodisiac products. It has been suggested that if efforts in North America to ban realistic-looking sexbots succeed, it may result in a black market.

People engaged in the black market may run their business hidden behind a front business that is not illegal.

Often certain types of illegal products are traded for each other, depending on the geographical location.

Black markets flourish during wartime. States engaged in total war or other large-scale, extended wars often impose restrictions on use of critical resources that are needed for the war effort, such as food, gasoline, rubber, metal, etc., typically through rationing. A black market then develops to supply rationed goods at exorbitant prices. The rationing and price controls enforced in many countries during World War II encouraged widespread black market activity. One source of black-market meat under wartime rationing was farmers declaring fewer domestic animal births to the Ministry of Food than had actually happened. Another in Britain was supplies from the U.S., intended only for use on U.S. army bases on British land, but leaked into the local native British black market.

For example, in the Parliament of the United Kingdom on February 17, 1945, members said that "the whole turkey production of East Anglia had gone to the black market" and "prosecutions [for black-marketing] were like trying to stop a leak in a battleship", and it was said that official prices of such foods were set so low that their producers often sold their produce on the black market for higher prices; one such route (seen to operate at the market at Diss, Norfolk) was to sell live poultry to members of the public; each purchaser would sign a form promising that he was buying the birds to breed from, but then take them home for eating.

During the Vietnam war, American soldiers would spend Military Payment Certificates on maid service and sexual entertainment. Also if a Vietnamese civilian wanted something that was hard to get, he would buy it at double the price from one of the soldiers, who had a monthly ration card and thus had access to the military stores. The transactions ran through the on-base maids to the local populace. Although these activities were illegal, only flagrant or large-scale black-marketeers were prosecuted by the military.

A classic example of new regulation creating a black market is the prohibition of alcohol. When such a law disappears, so does the black market. Sin taxes - taxes levied on harmfully deemed products such as alcohol and tobacco - may increase the black market supply. One argument for legalizing marijuana is the elimination of the black market, and taxes from that economy becoming available for the government.

1. ^ Edgar L. Feige (1989). Edgar L.Feige (ed.). The Underground Economies:Tax Evasion and Information Distortion. Cambridge University Press.

2. ^ Feige, Edgar L. (2009). "Defining And Estimating Underground And Informal Economies: The New Institutional Economics Approach". World Development. Elsevier. 18 (7): 989-1002. doi:10.1016/0305-750x(90)90081-8. S2CID 7899012.

3. ^ Feige, Edgar L. (2012). pp. 239-263. "New Estimates of U.S. Currency Abroad, the Domestic Money Supply and the Unreported Economy" (PDF). Crime, Law and Social Change. 57 (3): 239-263. doi:10.1007/s10611-011-9348-8. S2CID 153877115.

4. ^ "Black Money in India | LawJi". LawJi.in : one-stop destination for all law students. Archived from the original on September 18, 2018.

5. ^ Feige, Edgar L. (2016). "The Meaning and Measurement of Unobserved Economies: What do we really know about the "Shadow Economy"?". Journal of Tax Administration (30/1).

6. ^ Feige, Edgar L. (September 2009). "New estimates of overseas U.S. currency holdings, the Underground economy and the "Tax Gap"". Mpra Paper.

7. OECD (2002) ^ Measuring the Non-Observed Economy A Handbook, Paris France.

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# data[].attributes.attachment_link.description
A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited or restricted by law, non-compliance with the rule constitutes a black-market trade since the transaction itself is illegal.

# data[].attributes.body
The Black Market is a place where people buy and sell outside of government regulations. Basically, they're off the grid. The two main things sold on The Black Market are drugs and firearms. But here is the catch. Buyers are screwed because they can easily get scammed out of their money, or they could get mugged or something bad that could cause them to die. The Black Market is a bad place to shop. Black markets are also the venues where highly controlled substances or products such as drugs and firearms are illegally traded. Black markets can take a toll on an economy, since they are shadow markets where economic activity is not recorded and taxes are not paid. In the financial context, the biggest black market exists for currencies in nations with strict currency controls. While most people may shun a black market because they consider it sleazy, there may be rare occasions when they have no choice but to turn to this necessary evil. The black market's many drawbacks include the risk of fraud, the possibility of violence, being saddled with counterfeit goods or adulterated products (which is especially dangerous in the case of medications), and the fact that the buyer has no recourse.As for currency black markets, they exist primarily in nations that – apart from currency controls – have weak economic fundamentals (such as a high inflation rate and low currency reserves) and a fixed exchange rate where domestic currency is pegged at an unrealistically high level to the US dollar or other currency. As a result, the currency black market is flourishing in nations like Argentina, Iran, and Venezuela.

# data[].attributes.attachment_link.readable_text
A black market is economic activity that takes place outside government-sanctioned channels. Black market transactions usually occur "under the table" to let participants avoid government price controls or taxes.

Black markets are also the venues where highly controlled substances or products such as drugs and firearms are illegally traded. Black markets can take a toll on an economy, since they are shadow markets where economic activity is not recorded and taxes are not paid. In the financial context, the biggest black market exists for currencies in nations with strict currency controls. While most people may shun a black market because they consider it sleazy, there may be rare occasions when they have no choice but to turn to this necessary evil.

The black market's many drawbacks include the risk of fraud, the possibility of violence, being saddled with counterfeit goods or adulterated products (which is especially dangerous in the case of medications), and the fact that the buyer has no recourse.

As for currency black markets, they exist primarily in nations that - apart from currency controls - have weak economic fundamentals (such as a high inflation rate and low currency reserves) and a fixed exchange rate where domestic currency is pegged at an unrealistically high level to the US dollar or other currency. As a result, the currency black market is flourishing in nations like Argentina, Iran, and Venezuela.

Sometimes, a black market is the only choice for procuring goods in certain situations. For example, suppose you are on vacation with your family in an exotic location and run out of formula for your baby? If there is nothing available in local stores and the only way to acquire baby formula is through a black market transaction, few people would hesitate to make the purchase.

Paying a premium over the face value of a ticket to see a concert or sporting event is also an example of a black market transaction. In a number of developing nations, life-saving medicines are in short supply and, often, the only alternative is to procure them through the black market. While critics may carp that this only serves to perpetuate the illegal and unethical practice of profiteering from someone else's misfortune, participating in the black market is a relatively easy decision to make when someone's life is at stake.

# data[].attributes.attachment_link.description
A black market is economic activity that takes place outside government-sanctioned channels. Black market transactions usually occur "under the table" to let participants avoid government price controls or taxes. Black markets are also the venues where highly controlled substances or products such as drugs and firearms are illegally traded.