Black markets are the underground markets which operate outside the "legal system in which either illegal goods are sold or legal goods are sold at prices or at illegal conditions”. Black markets are characterized by high prices, violence and defective products. High prices on black markets, especially compared to legal markets, come from the risk taken by the supplier. Suppliers take the risk of being arrested, even fined or imprisoned, etc. ". The violence that often characterizes black markets stems from the fact that there is "no legal avenue for the peaceful resolution of disputes" and the party breaking the agreement must be forced to abide by the agreement, often by using threats or force. Black markets undercut and undercut legal markets, weakening the overall system in markets where black markets are more common. Black markets harm governments, legal sellers and buyers. One of the most common causes and also one of the most affected is the tax system of the country in which the black market operated. Black markets are not taxable and the government therefore loses valuable taxes on illegal profits. Black markets “account for a significant portion of GDP (gross domestic product) in many countries” and the size of U.S. black markets is estimated to represent nearly 8-10% of U.S. gross domestic product. Not only do black markets harm the economic stability of the countries in which they operate, but they also harm the legally acquired economic gains of competing sellers in the market. Legal sellers cannot compete with black market prices or products and thus lose gains that could be made without middle of paper......particularly, anything admirable - if something is excellent or commendable – think of such things. » Works Cited Gwartney, JD (2013). Economics: Private and Public Choice (14th ed.). Australia: South-Western Cengage Learning, 78.Ibid., 78.Ibid., 78.Ibid., 78.Davidson, C., Martin, L. and Wilson, J. (2007). Effective black markets? Journal of Public Economics, 91(7-8), 1575-1590. Ibid. Horwitz, S. (June 8, 2004). Cigarette smuggling linked to terrorism. The Washington Post. Retrieved November 5, 2013, from http://www.washingtonpost.com/wp-dyn/articles/A23384-2004Jun7.htmlWhatley, S. (July 24, 2009). North Korea executes Christian for distributing Bible: Rights Group. The Huffington Post. Retrieved November 5, 2013, from http://www.huffingtonpost.com/2009/07/24/north-korea-christian-exe_n_244340.htmlPhilippians 4:8-9 (New International Version).)