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HOW DO THE MEXICAN DRUG CARTELS WORK TO REDUCE COMPETITION AND INCREASE PROFITS - Essay Example

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Whereas the field of economics traditionally deals with legitimate businesses and the means by which interaction between individuals for business entities is conducted, there is a solid strata of the economy that is oftentimes on analyzed. It is estimated that each and every…
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HOW DO THE MEXICAN DRUG CARTELS WORK TO REDUCE COMPETITION AND INCREASE PROFITS
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HOW DO THE MEXICAN DRUG CARTELS WORK TO REDUCE COMPETITION AND INCREASE PROFITS

a very function of the fact that this particular practice is illegal and almost every single nation around the globe, the profit margins for such behavior are extraordinarily high. Due to the fact that individuals are attracted to this particular line of work based upon the extraordinarily high income they can earn with relatively little effort, there is a continual allure that drug trafficking, smuggling, production, and distribution has for individuals that might not otherwise consider integrating with the traditional economy. Needless to say, in order for drug distribution, transportation, or production to be particularly effective, it must necessarily have a certain level of organization. In much the same way that individual businesses within the traditional economy grow and expand to encompass operational goals and responsibilities that comprised many different individuals, drug cartels have grown as a function of controlling drug trafficking and production as well as smothering potential competition. Whereas the individual might be able to make a relatively small amount of money based upon drug trafficking and production, the protection, level of legitimacy, power, and reach that a cartel as allows this particular process to be engaged in a much more efficient manner. As such, the following discussion will provide a detailed observation with regards to the economics of cartel behavior. Subsequently, it is the hope of this particular author that such a unit of analysis will be beneficial in attempting to relate the dynamics of how this subsector of the economy works; as well as providing an insightful understanding of how economic principles that define the remainder of the economic sphere remain applicable and worthy of consideration – even within the black market.
When one considers the illicit drugs industry, they invariably consider the most commonly referred to forms of drug trafficking; marijuana and cocaine. Although it is true that marijuana ... Read More
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