Black markets are underground markets that operate outside “the legal system in which illegal goods or legal goods are sold at illegal prices or conditions”. Black markets are characterized by high prices, violence and defective products. High prices in black markets, especially compared to legal markets, result from the risk the supplier takes on. Suppliers run the risk of “arrest, possibility of fine or prison sentence, etc.” The violence that often characterizes black markets derives from the fact that "there are no legal channels for the peaceful resolution of disputes" and the party who does not respect the agreement must be forced to follow it, often through the use of threats or Force. Black markets undermine and weaken legal markets, making the overall system weaker 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 damaged is the tax system of the country where the black market operated. Black markets are not taxable and therefore the government loses valuable taxes from illegal earnings. Black markets “represent a significant portion of GDP (gross domestic product) in many countries,” and the size of U.S. black markets is estimated to be nearly 8-10% of U.S. gross domestic product. Not only do black markets damage the economic stability of the countries in which they operate, but they also damage the legally acquired economic gains of competing sellers in the market. Legal sellers cannot compete with the prices or products of the black markets and therefore lose the profits that could be obtained without the official card, whatever is admirable, if something is excellent or praiseworthy: think about these things.” Works Cited Gwartney, J.D. (2013). Economics: Private and Public Choice (14th ed.). Australia: South-Western Cengage Learning, 78.Ibid., 78.Ibid., 78.Ibid., 78.Davidson, C., Martin, L., & Wilson, J. (2007). Efficient black markets?. Journal of Public Economics, 91(7-8), 1575-1590.Ibid.Horwitz, S. (2004, June 8). Cigarette smuggling linked to terrorism. The Washington Post. Retrieved November 5, 2013, from http://www.washingtonpost.com/wp-dyn/articles/A23384-2004Jun7.htmlWhatley, S. (2009, July 24). 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)