International commerce: Piracy & smuggled goods...?

Question

Would the smuggled good & piracy overpass the fair trades?

Answer 1

Smuggled goods are normally legitimate items that are brought in illegally into a country to avoid customs fees. These usually end up for sale at a fraction of the cost that items that came in through normal channels do. This is great for the consumer, but bad for the government and government run projects that rely upon funding by customs fees.

Pirated items usually originate within the same country and are distributed within the country. These items while providing a bargain for the consumer, only enriches the person providing the pirated item, and does not enrich the company that produces the legitimate product. So profits for the company go down, people get paid less or get less benefits, and people get laid off. Piracy has a negative effect on the economy and people's lives as a whole, although you may gain temporary benefits by buying a pirated item versus the real thing, in the end, pirated items stop working, you cannot get support for them, and so on - so you are forced to eventually abandon it or buy the real thing.

Fair Trade is depending on who you talk to, which government agency you talk to and person belief. It is a mental concept and not actuality.

Answer 2

Guys.. the question is "is the black market bigger than open marks (that we know about and can see and trace"

Overall, and in most developed nations the answer is no. Legal and open trade is much much larger, but you would be surprised how much the black market (illegal trade of all kinds - Its not just drugs and piracy - its not declaring income, sales.. any under the table dealing) adds to the economy.

It could add up to 50% in some nations.

In poorer nations in Africa, South America, places like that, I would think the Black market is probably bigger than legitimate trade.

I have no stats to back this up, but you could probably research it.

Answer 3

Problem with piracy is it costs more than legitimate trade. By encouraging legit mate trade you improve the quality of live for the supplying country - by supporting piracy you also support the drug traffic trade that often uses the guise of "goods" transport to hide their real business.