What is the effects of smuggling on economy?.

[hastral45]

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.

 

[Niyi Briggs]

When you smuggle in foreign goods into the economy, you kill the local industry as those goods would come and compete with local products. This would not make GDP to grow and the economy would shrink.

 

[IB D]

One effect of smuggling is that it can cause the proliferation of low quality products in that country. That's because those products don't pass through standard processes that certifies of the product is qualitative enough to be sold in the country.

 

[hastral45]

When you smuggle in foreign goods into the economy, you kill the local industry as those goods would come and compete with local products. This would not make GDP to grow and the economy would shrink.

Many people don't know this. We prefer foreign products to our local products and are still crying of unemployment and poor economy. How do we expect our economy to grow when we don't encourage local industries to flourish.

 

[Stardom22]

Smuggling would kill the economy of the local produce good and services on the country. This would also effect the general economy of the country as the smuggled products are never taxed.

 

[Shavkat]

It will greatly affect the economy of a particular country. Besides, the businesses will be affected because most items being smuggled will be cheaper. That is why we need to stop this illegal act.

 

[Stardom22]

Smuggling is one of the major factors that deprived the growth of any economy in the nations. The introduction of the smuggled goods to the economy literally kills the market for the locally produced goods.

 

[uptrendfinancialsignal]

Taking goods into the country illegally is totally prohibited because it is dangerous to people's health if it is what is consumed and it has bad effect on the economy as well.

 

[IB D]

Smuggling is one of the major factors that deprived the growth of any economy in the nations. The introduction of the smuggled goods to the economy literally kills the market for the locally produced goods.

It is even worse in a country like mine which has a default mindset that imported things are superior to locally sourced products. The local production would just die with no hope.

 

[Chibson]

Smuggling has a very bad negative effect on the economy of any nation. When goods and services are smuggled into a country the government automatically loses money.

 

[eldavis]

These people smuggling goods into the country would end up destroying the economy in the long run. This is because most of these products that come in do pay tax and it is these tax they use in running the economy.

 

[Etini Willie]

And smuggling affects local production in a negative way because it would create market competition between local products amf foreign products.

 

[riberet19]

I think that smuggling and black markets degrade the economy little by little, but smuggling and the black market are usually more present in those economies where free trade is more restricted and there is too much bureaucracy, regulations or prohibitions, it is clear that free trade must also have its rules such as prohibiting certain deals related to drugs or others, but sometimes free trade is too fenced in and causes black market and smuggling more present.

 

[Heatman]

The infant industry is always going to be affected by the cases of smuggling in the country and also there will be a lot of fake products in the market.

 

[Springtime]

Smuggling products into a country will seriously affect the economy. Other than tax income, the smuggled products which are sold at a cheaper price will affect the competitiveness of local or legally imported products. The quality of smuggled products is also a concern.

 

[Stardom22]

Smuggling is never a good thing to have in the economy. It really reduces the market for the local produced goods as people would run for the cheaper smuggled goods in the market.

 

[Sophie]

Smuggling as earlier said is the process of bringing contra bands into a country although not all are bad it's still wrong and it can lead to insecurity which has a downturn in an economy

 

[fcbetting]

Yes it is bad fo economy but often people uses such actions and buy sumgllers merchedise since it is cheaper. Goverment have big tax, company take to big profit and we pay to big price.

 

[Golden9]

Smuggling, like any illegal financial act affects the economy of the country. It affects local manufacturing mostly because will have to compete with lower prices of the imported goods.

 

[Heatman]

Smuggling, like any illegal financial act affects the economy of the country. It affects local manufacturing mostly because will have to compete with lower prices of the imported goods.

The economy of the country will definitely be ruined with acts of smuggling being rampant. It will even push a lot of fake products in the market.

Post automatically merged: Jul 31, 2023

It will greatly affect the economy of a particular country. Besides, the businesses will be affected because most items being smuggled will be cheaper. That is why we need to stop this illegal act.

It is an illegal business that will affect what is happening in the market which will probably make so many products to become fake in the market.