NCJ Number
120420
Date Published
1989
Length
12 pages
Annotation
This chapter examines the economics of trafficking in marijuana, cocaine, and heroin.
Abstract
The decision to enter the drug trade, although relatively easy, is based on financial, legal, and logistical considerations, many of which parallel those considered in entering a legitimate business enterprise. Market entry into the marijuana business is easy, and control over domestic marijuana trafficking in almost any geographic area is generally difficult to accomplish. Cocaine, on the other hand, is a drug which provides a much higher profit margin, is easier to smuggle because of its size, and is physically addicting to the user, all of which adds to the marketability of the drug. On the down side, however, it is manufactured almost exclusively in South America, therefore requiring more individual involvement in its manufacturing and transportation, resulting in a higher price for the drug. Much of the competition in the cocaine market has resulted in the innovation of the crack house, which is a fortified structure or residence used to protect the occupants from intrusion by police or criminals desiring to seize or steal drugs or drug profits.