Question

1. How did the cartels in Latin America manage to limit the flow of drugs in different markets?
2. Why is the drug trade is so profitable for illicit drug dealers?
3. What is money laundering? How would drugs gangs do money laundering?

Answer 1

A cartel is group consist of many people , groups, association or organization that provide specific service or product. The main reason behind the formation of cartel is to control the supply and pricing of goods and services in market.  

Reason how did the cartels in america manage to limit the flow of drugs in different markets are by change the nature of supply of goods and services which cartel do the same to limit drugs in market and the reason behind these limitation by cartel in market by increasing the highest demand of product and services by shortage supply.

The illegal drugs trade or drug trafficking is a global black market used to cultivation, manufacture, distribution And sales arethe that drugs prohibited under drug prohibition law. Drugs trade is profitable for illicit drug dealers because the consumption of illegal drug is wide spread globally and there is also large number of illicit drug dealers are available to provide these illegal drug easily and illicit drug dealers are also place movable in nature and that's why it is very difficult for local authorities to stop its popularity even low wages earning people mostly attracted toward this work.

Money laundering is a process of making illegal money to legitimated money which is generated by criminal activities like drug trafficking, terrorist funding.

There are mostly three process by which drugs gangs effectively would laundering their money there is also other method for doing the same which we discuss at the end of three process.

1. Placement - The first step is to invest the black money in market by different agents and bank in form of cash with formal and informal aggriment.

2. Layering- In these process the launderers deposit fund in their abroad bank account in those country were bank do not revels the details of account holder on the name investment instruments bond, stocks etc.

3. Integration- These is the final stage in which laundered property is reintroduce as legal money into the financial world.

The other method is retail business where mainly case transection is take place so drug gangs create fake transection and receipt for there illegal money and so these as a legal profit of business cells.