Article Summary – Article Example
Article Summary According to research studies by a group of economists, there is a close relationship between violence and the use of drugs (Benson 34). The use of drugs has become an international concern because of its effects on crime and violence. Some countries such as Mexico have made efforts to legalize drug trade in order to reduce its overall effects. Drug trade also has a number of implications on the economy. Drug trade has very high volumes of sales but there are minimal profits from such activities. This is because a large number of intermediaries are involved in the business hence reducing profit margins between individual businesses involved in the trade (Bruce 27). When trader can manage to be in business with low profits, they tend to operate by enlarging their bases and expanding business to make more sales. As a result, revenues realized by the respective countries are set to increase and result to economic developments (Bruce 27).Competition also tends to set in because the market has minimum or no barriers to entry hence many people will be attracted to venture in drug trade
Opinion polls conducted in the US and Mexico recorded that such countries would be well of if they had legalized the use of drugs. They argue that the legalization process would ensure that the country records high levels of GDP through taxation of the use of drugs. Research shows that if Mexico would legalize the use of drugs, then the country would be able to collect revenues close to what drug cartels collect (Benson 40).
Benson, Bruce. Handbook on the Economics of Crime. Cheltenham: Elgar, 2010. pp. 23-145.