Question

What purpose do parallel markets and black markets serve? Provide examples of their operations and their...

What purpose do parallel markets and black markets serve? Provide examples of their operations and their function.

Homework Answers

Answer #1

Black markets and parallel markets operate as a separate market from the national market structure. These exists when the economy is controlled, restricted and when a country has less control over its economy. In some countries in order to avoid higher price and regulations black market exists as a parallel market.

In Iran, the official rate would be available only for essential like food and medicine which was trading at higher rates in the black market because of restrictions.  

In Venezuela because of inflation and unstable foreign exchange reserves, the Venezuela currency lost its value in black market

In US, drug dealing is an example of black market which operates in under the demise of government control

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why were Unions organized? Support your thoughts and provide examples. Do Unions still serve a purpose?...
Why were Unions organized? Support your thoughts and provide examples. Do Unions still serve a purpose? Support your thoughts. Provide your thoughts on the future of Unions and the role they might serve.
. What are post translational modifications? What purpose do they serve? Give at least 3 examples.
. What are post translational modifications? What purpose do they serve? Give at least 3 examples.
China has a number of parallel social media platforms that serve the same purpose as mainstream...
China has a number of parallel social media platforms that serve the same purpose as mainstream social media in the Western world. What are the implications of this?
How do histones work? What purpose do they serve? How do they associate with DNA?
How do histones work? What purpose do they serve? How do they associate with DNA?
According to Jung, why are archetypes important and what purpose do they serve?
According to Jung, why are archetypes important and what purpose do they serve?
Why do composite CN’s need to be calculated in hydrology? What purpose do they serve?
Why do composite CN’s need to be calculated in hydrology? What purpose do they serve?
Discuss what you think about the value of personality inventories. What purpose do they serve? Do...
Discuss what you think about the value of personality inventories. What purpose do they serve? Do you feel they are a valid way to evaluate people? Do you feel they have a negative effect? If so, in what way?
What purpose do business letters serve? Why do we have to go to the trouble of...
What purpose do business letters serve? Why do we have to go to the trouble of writing longer business letters when a quick email could be sent instead?
What are the challenges of conducting marketing research in global markets. Provide examples of companies that...
What are the challenges of conducting marketing research in global markets. Provide examples of companies that failed to conduct adequate research and failed in in their attempt to compete successfully in foreign markets.
What is the purpose of a scatter diagram (Scatter plot)? (Please provide Scatter plot examples)
What is the purpose of a scatter diagram (Scatter plot)? (Please provide Scatter plot examples)