Smuggling is an act of bringing or importing goods that are contrabands into the country. This act is considered as illegal by the government.
It affects the economy of a particular country. It does affect the GDP of the country because locally produced goods are discouraged. The smuggled goods do not pay taxes on them, hence their prices would be low compared to the local goods.
It affects the economy of a particular country. It does affect the GDP of the country because locally produced goods are discouraged. The smuggled goods do not pay taxes on them, hence their prices would be low compared to the local goods.