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Definition: Black Market
A market where in the goods and services are traded in an illegal manner is called the Black market or the underground economy. The main difference of a black market transaction is that the trade itself is illegal. The goods and services might or might not be illegal to own, or to deal through legal channels. Since the transactions are not legal, the market itself is required to run outside the purview of the formal economy, comprehensively supported by the recognized state power. The main motives for trading in black markets are to avoid taxes, or border price controls. Generally, the entirety of such activities is stated to with the definite article as a counterpart to the authorized economies by market for such products.
The black market is different from the grey market, wherein the commodities and services are distributed via channels which are legal but not, authorized, or intended by the original producer and the white market. The black market is reflected as a subset of the informal economy, of which 1.9 billion people all over the world are employed.
For example: One of the most bulging black markets in the USA is the Drug dealing. Here people buy and sell drugs even after having the knowledge that such an activity is illegal and that holding the drugs by themselves is illegal. Still, the demand for drugs is large enough to outdo the law, though people normally attempt to steal their involvement. Beyond Drugs there are many other black markets, however, and though the goods and services may not illegal, the way in which they are traded is illegal. For example, it is legal to have a housework lady, but it is not legal to hire a housework lady who is not a legal United States citizen