Trade, gdp and employment
Due to recent international conflict, several of our government’s largest trading partners have been unable to provide ourr country with all of the goods that it needs. As a result, our country’s government has been forced to ration some of its most demanded items, which has led to an increase in illegal market activities, particularly the selling of goods on the black and grey markets.
This has had a damaging effect on our nation’s economic situation and within the last month it has cost our government nearly 20% in potential GDP. At this rate, economists estimate that illegal trade and market activities will rise to an astonishing 40% of GDP within the next six months. An economic crisis is looming for our country, and action needs to be taken.
In our country has decided to approach international trade organizations to ask for help. In addition, it has also decided to take action to fight black and grey market activities in order to stabilize the economy.
This has had a damaging effect on our nation’s economic situation and within the last month it has cost our government nearly 20% in potential GDP. At this rate, economists estimate that illegal trade and market activities will rise to an astonishing 40% of GDP within the next six months. An economic crisis is looming for our country, and action needs to be taken.
In our country has decided to approach international trade organizations to ask for help. In addition, it has also decided to take action to fight black and grey market activities in order to stabilize the economy.
International Organizations:
Our country has decided to seek help from the World Trade Organization. As a result, the organization has found several different countries to trade with us. Also, with the assistance of the WTO, it would help lower risks of black market activties and operations.
Policies: In order to stop the black market, the Republic of Mandalia has chosen to place hefty fines, and order jail time for any citizen that is caught partaking in these actions. The maximum time for jail would be approximately fifteen years, without any access to bail outs. Another policy that our country has chosen would be to allow the government to have complete control over our oil reserves. The government would recieve most of the profits made from the oil.
Preventing Black Market: In order to prevent access to the Black Market, our country would regulate trade very closely, to be sure that there isn't any illegal activity happening.
Impact of Black Market: If the Black Market isn't stopped, and is continued, it would raise the amount of unemployment, lower the GDP, and it would create a high poverty line. This would all have a terrible impact to our country, and that is why we have created the necessary policies, in order to prevent this from happening.
Our country has decided to seek help from the World Trade Organization. As a result, the organization has found several different countries to trade with us. Also, with the assistance of the WTO, it would help lower risks of black market activties and operations.
Policies: In order to stop the black market, the Republic of Mandalia has chosen to place hefty fines, and order jail time for any citizen that is caught partaking in these actions. The maximum time for jail would be approximately fifteen years, without any access to bail outs. Another policy that our country has chosen would be to allow the government to have complete control over our oil reserves. The government would recieve most of the profits made from the oil.
Preventing Black Market: In order to prevent access to the Black Market, our country would regulate trade very closely, to be sure that there isn't any illegal activity happening.
Impact of Black Market: If the Black Market isn't stopped, and is continued, it would raise the amount of unemployment, lower the GDP, and it would create a high poverty line. This would all have a terrible impact to our country, and that is why we have created the necessary policies, in order to prevent this from happening.