(Daved Luhnow, 2006) reported that he U.S president Richard Nixon confirmed ‘war on drugs’ on Mexican drug cartels however, ‘the supply and use of drugs has not changed in any fundamental way’. A Mexican official spent years combating drug trafficking he stated that ‘This war is not winnable’ (The Wall Street Journal, 26th December 2009). Various economic factors contribute towards the continuing existence of the MCs.
Drug trafficking is a global illicit trades that includes, agriculture, manufactures, distribution and sale of illegal substance which are issued to drug prohibition laws. Various Academic and policy communities share the belief that organised crime groups operate correspondingly to legitimate business. For example, the …show more content…
The growing power of cartel threaten business through the illegal enterprise of extortion which demonstrate a threat amongst businesses however through the use of The Game Theory business ensure that the prevent the cartel’s effort to extort by reaching to an agreement where ‘cartels promises not to pursue extortion’ whilst business owners promise ‘to turn a blind eye to drug trafficking and other illegal activities’ (Loconsolo.E.M.M, November 2013). The Game Theory
(Loconosolo.E.M.M, 2013) demonstrates how the game theory operates between illegal and legal markets and how the theory benefits the existence of drug trafficking amongst the Mexican Cartels. (Figure 1 depicts extortion dilemmas utilizing ordinal ranking (‘4’ is the best and ‘1’ is the worst) includes two players a business owner and the Cartels)
AC
The business owner accepts to pay ‘protection’ and turn a blind eye to illegal cartel …show more content…
Business Owner: This is the third best scenario. Although the business over is willing to pay the fee and keeping a blind eye towards illegal cartel activities in substitute for release from violence, the business owner surrenders his profit eventually resides in a threat- crime- filled environment.
BC
The cartel attempt to extort a local business owner but meets hinder confrontation: the business does not pay extortion and informs law enforcements.
Cartel: This is the second best scenario. Although drug cartels utilise threat and violence towards business owners, in the lack of efficient police action they still receive money. Business owner: This is an appalling scenario for business owners since local authorities in Mexico have little to no power over Cartels. Cartels can continue to extort business owners through violence and punishment.
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Business owners willing pay fees and turn a blind eye to cartel actives, but local Cartel has no interest in
Drug trafficking is a global illicit trades that includes, agriculture, manufactures, distribution and sale of illegal substance which are issued to drug prohibition laws. Various Academic and policy communities share the belief that organised crime groups operate correspondingly to legitimate business. For example, the …show more content…
The growing power of cartel threaten business through the illegal enterprise of extortion which demonstrate a threat amongst businesses however through the use of The Game Theory business ensure that the prevent the cartel’s effort to extort by reaching to an agreement where ‘cartels promises not to pursue extortion’ whilst business owners promise ‘to turn a blind eye to drug trafficking and other illegal activities’ (Loconsolo.E.M.M, November 2013). The Game Theory
(Loconosolo.E.M.M, 2013) demonstrates how the game theory operates between illegal and legal markets and how the theory benefits the existence of drug trafficking amongst the Mexican Cartels. (Figure 1 depicts extortion dilemmas utilizing ordinal ranking (‘4’ is the best and ‘1’ is the worst) includes two players a business owner and the Cartels)
AC
The business owner accepts to pay ‘protection’ and turn a blind eye to illegal cartel …show more content…
Business Owner: This is the third best scenario. Although the business over is willing to pay the fee and keeping a blind eye towards illegal cartel activities in substitute for release from violence, the business owner surrenders his profit eventually resides in a threat- crime- filled environment.
BC
The cartel attempt to extort a local business owner but meets hinder confrontation: the business does not pay extortion and informs law enforcements.
Cartel: This is the second best scenario. Although drug cartels utilise threat and violence towards business owners, in the lack of efficient police action they still receive money. Business owner: This is an appalling scenario for business owners since local authorities in Mexico have little to no power over Cartels. Cartels can continue to extort business owners through violence and punishment.
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Business owners willing pay fees and turn a blind eye to cartel actives, but local Cartel has no interest in