The Impact of Globalization on Transnational Organized Crime

This report investigates the impact of globalization on transnational organized crime, specifically focusing on illicit drug smuggling and money laundering within the UK market. The study explores how globalization facilitates drug supply, enhances criminal networks, and complicates efforts to curb illegal activities. It analyzes the effects of globalization on the cocaine and heroin markets in the UK, examining economic, political, and social impacts. The report highlights the increased efficiency of illicit businesses due to lower communication and transportation costs, as well as the challenges posed by the increasing flow of goods and people. It also discusses the role of technology and the internet in aiding criminal activities and undermining supply containment policies. The analysis includes critical assessments of the market structure, the influx of traffickers, and the social implications, concluding with a comparison of the intensity of globalization's effects on drug smuggling and money laundering.

Running head: TRANSNATIONAL ORGANIZED CRIME
TRANSNATIONAL ORGANIZED CRIME
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Abstract
The concept of the economic globalization is a far more complex concept than the suggestions
by the international finance and the transnational corporations. Furthermore, globalization
facilitates the supply of the drug on a simultaneous basis, with the improvement of the efficacy
and the opportunities related to multiplying abilities. This process is done by the hampering of
the reduction of the drug supply with more of the difficult process for larger stops and numerous
flows of drugs. The essay will illustrate and analyze the impact of the globalization over the
illicit drug smuggling and money laundering and compare the effects on both the fields with
critical assessments. The chosen market for analysis of the drug trafficking is UK and the drugs
are heroine and cocaine. The report furthermore summarizes the comparison regrading the
intensity of the effect of globalization with a short conclusion.

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Introduction
The context of the globalization together with the rising use of the internet tends to have
some of the major impact over the illicit drug markets and the wider ramifications (Ghodse
2016). Apart from all the other positive factor and effects, globalization simultaneously tends to
imply and facilitates the supply of drug and the instances of transitional crime. According to
Lalayants, Doel and Kachkachishvili (2015), the rapid development in regards to the technology,
financial information and the communication helps in the flow of the money throughout the
world in a pace of rigid speed and ease. These procedure combating the approaches of money
laundering makes the task more urgent than ever. This is because the deeper the money gets
merged within the system of the international banking; it is generally more difficult for the
identification of the origin. The essay furthermore aims to illustrate and analyze the impact of the
globalization over the illicit drug smuggling and money laundering and compare the effects on
both the fields with critical assessments.
Drug and Impact
It has long been stated that the context of the globalization tends to undermine the impact
of the supply of the containment in the market that deals with the illicit drugs. There has been a
various number of the mechanisms within the context which includes the increasing the supply
of labor, increasing levels of competition, reduction of the communication, information, the costs
related to the finances (Zhidkova 2015). This furthermore in enhanced by the trafficking
activities, the production of the entrepreneurial networks, and the high demand of the drugs.
Critique and Analyze

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This paper of the essay aims to highlight and state the literature regarding the drug
trafficking in the UK market. The targeted dugs that will be discussed within the context of the
essay are the cannabis, cocaine and heroin. The evidences that supports the connection to the
mechanism varied and there lies no such obvious connection and the relationship among the type
of the drug or the level of the market regarding the identified mechanism. The mechanism
regarding some of the evidences that exist include the entrepreneurial networks of traffickers,
emergence of flexible and some of the benefits regarding the rising movements of the goods,
people and the capital (Martin 2014). The essay furthermore highlights the limitation regarding
the difficulty towards the assess to the extent regarding the observations and the representative
over the UK drug market as the whole.
The context of the globalization and the increasing use of the internet and the social
media are some of the factors that tends to have some of the major impact over the markets of
the illicit drug trafficking together with the wider rate of the ramifications. The context of
globalization facilitates in the supply of drug by the improvement of the multiple opportunities
and the efficiency followed by hampering of the supply of drug and the reduction activities and
also making it more critical to stop the big and the varied flow of the drugs (Schultze-Kraft
2014). This is one of the most challenging threats of the development that has been faced by the
international agency of the drug control in the present environment. The context of the
globalization has created towards some of the gains in the efficiency regarding the activities of
the trafficking. The efficiency of the operation of the illicit business have increased due to
information costs, lower transportation anf the act of communication. According to some of the
major researches, the context of the globalization has also made some of the possibility regarding
the early transfers of the technological and the scientific development that includes the

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exploitation by the illicit and the legitimate business (Fukumi 2016). The lack of the improved
supply regarding the containment policies , the reduction of the costs regarding the bridging and
the gap along the producers and the suppliers leads towards the low level of the retail process
with the potential high rate of the consumption of the illicit drugs.
According to the research, one of the main methods or the ways that the globalization
impacts the illicit drug market of UK is the increasing of the intensity of the flow of people and
the goods through the country together with the context of the diversity (Fleetwood, Radcliffe
and Stevens 2015). There lies both effect of the social and globalization for the money and the
drug. This can be subdivided in the context of the economic, political and social strands.
According to the research by Mulabdic, Osnago and Ruta (2017), the author in the
findings illustrated that various of chemicals and the drugs that are on the basis of plants are
being supplied within the territory of Europe and UK are being produced outside the country
while some of the precursor chemicals and drugs that are produced within the territory of country
are supplied to the other parts of the world. The author in his findings stated how each of the car,
bus, passenger , containers and the vessels of the sea that are entering or going out of the place
has been the target for an effective opportunity for smuggling of illicit goods. This has induced
the spectacular growth within the transport of the globe, logistics and trade through out the past
years which has furthermore resulted in multiplication of opportunities.
Explore
In market of United Kingdom, the drugs such as the cocaine and heroin market has been
estimated cost as the valuation of £4 billion on the basis of per annum . As stated by the current
reports by UK, these drugs within the market have the substantial social costing which is beyond

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the valuation of the market. The reports suggest that the heroine users of UK commit crime that
is worth of £16 billion for funding their use of drugs and also regarding in terms of the effect
over social functioning and health (Lalayants, Doel and Kachkachishvili 2015). The effects of
the globalization over the operation of the market regarding the illicit drugs might hold essential
lessons towards the effectiveness of the pillars of the strategy of the national drug in UK. In the
terms of the political effects of the illicit drug smuggling due to globalization, it is noted that just
like the improved level of the efficiency of the markets with the licit goods, it has furthermore
been argues that it furthermore improved the efficiency of the illicit good market; furthermore
undermining the effectiveness of the policies of supply containments.
As per the analysis by Sudbury (2014) there has been number of phenomenon that has
been identified in the heroin and cocaine market in UK that attributes to the forces of the
approaches of globalization and overwhelms the impact of the supply regarding the policies of
constrain. In the context of the impact over the social and the political and social approach, it can
be stated that the efforts for limiting the supply of the drugs were intensified by the measures like
incarceration and seizure in UK market, but the efforts seemed to go in vain. With the
consumption and the production of the drugs specifically in the illicit market of UK targeting the
supply of cocaine and heroine, the economy of the country was at stake.
The three of the major effects of the globalization as per the research study by Agnew
(2017) regarding the illicit heroine and cocaine smuggling in the market of UK includes the
effect of the market structure. There has been an increasing rate of the consumption in the
economy that resulted from emerging of the markets and the reduction of the retail price and the
margin of the profits by the dealers. Besides these there had been the risk of the premium effect
that included the influx of both low and high level of the traffickers in the market and the

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reduction of the risk regarding the premium components of the wages within the UK market.
Finally the efficiency impact includes a large share of the effect of the globalization over the UK
drug market (Windle 2018). This includes the reduction of the operation costs within the market
for the illicit drugs that is linked with the low level of communication, transport, financial and
information related costs. This approach is further followed by the increased ability for the
activities related to trafficking conceal due to the result of the increased level of the travel, trade
and capital flows.
The author, Densley et al. (2018) identified the UK market being characterized by the
monopoly power followed by the points on inconclusive evidences. There lies a very limited
evidence over the organization with the illicit drugs in UK. There includes many of the street
and middle level dealers describing an increased competition within the cocaine market with the
landing of the dealers from Jamaica in the year 1980. There is also certain evidences regarding
the fact that the ethnic group of minorities plays a major role in the UK market for smuggling of
illicit drugs.
A number of studies have hypothesized the mechanism and the process by which the
context of globalization might explain the changes within the process in the market of UK
dealing with illicit drugs (Kan 2016). This also undermines the efforts of the policies of supply
containment. The summarized results from the research studies by several of the author includes
the effect over the UK market structure. This includes the reduction in the retail price, increased
level of competition, influx of the traffickers within the market, creation of the international
networks regarding the flexible traffickers together with the increased drug demand.
Impact the Social and Globalization for drug and money – Economic, Political and Social

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In the terms of the social, economic and the political approaches, the globalization has
impacted the illicit drug market of UK in some of the major forms. The demand for the drugs in
the UK market was being invariable reported to be high followed by the one and only variation
within the demand by the traffickers were the increase in the festival time. As per the reports, the
traffickers experienced a high rate of supply of the labor to the UK market. With the invent of
the use of the rapid technology in the economic platform of the country as a result of the
globalization, there has been some of the major evidences regrading the use of the mobile
phones that was very much common among the traffickers (Fjäder 2014). These enabled them to
have increased access towards the data and the relevant information regarding the activities of
law enforcement. From the social approach the environment projected a mixed evidences
regrading the competitiveness of the drug market. Post the invent of the globalization, the use of
the co-operation among the traffickers, the use of the violence and the issues and the challenges
related to the trust among the customers and the dealers were noted as limiting the competitive
level within the market. In short, there had been many of evidences targeting the benefits that are
being derived by the traffickers from the rising and increased movement of goods, capital and
people. The role of ethnic minorities in the market of UK for illicit drugs were another of the
main factor (Decorte and Potter 2015). The role and the impact of the globalization has
influenced the connections and the emphasis of the traffickers with the companies of the
transport, for smuggling of drugs and for their ability for investing to abroad. Further evidences
lied regrading the ability of the trafficker to network with the foreign traffickers in the prison for
the expansion of the social space for allowing them to operate in a more efficient manner.
According to Levi (2014) the criminal organizations still tends to gain significant profit from the
trafficking of the illicit drugs. In the form of cocaine and heroin. The impact of the globalization

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has led to the scanty flow of the review of the drug market which accounts for only one third of
actual produced and smuggling of drugs.
Corruption Perception index
This section will furthermore include the discussion of Corruption Perception Index
which is an index that is being published on an annual basis by the International Transparency
since the year 1995. This index ranks the countries by their level of the corruption that is
perceived in the public sector as being reported and determined by the assessment and the
opinions of the experts. According to Bichler, Bush and Malm (2015) the country scored 80
points out of 100 on the corruption Perceptions Index. With the growing number of the
corruptions and the illicit drug trafficking, it is evident that the UK market tops the list of the
corruption perception index through out the world.
Thus it can be summarized that in the market of UK, the illicit trade comes first and the
crime comes second. The approach of the illicit trade follows the same set of rules similarly to
trade within the licit goods. Finally, the worldwide demographic shift like the rapid growth,
population and urbanization together with the economic developments have some of the major
implications for the drug market in globe and impacts the role of UK towards the scene of world
drug.
Money Laundering
The term money laundering generally is used to describe the procedure by which the
criminals disguise the original or main ownership together with the control of proceeds of
criminal from deriving from a source that is legislative. According to Harvey and Bice (2014) it
is the criminal way for ensuring that the crime pays at the end of each and every process. The

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approach of money laundering is a critical topic towards an effective operation of each and every
form of crime that is organized and transitional. The process of money laundering involves a
wide range of the series including multiple of transactions that use for source disguising
regarding several of the assets of financial origin which can be used without foregoing the
criminals who are actually seeking for using them. The three main stages include the process of
layering, placements and integration. These are the process by which the criminal initiates in the
transformation of the proceeds of money that is derived from the illicit and illegal activities
towards the find with the help of apparent legal source. This section of the paper will highlight
the impacts of globalization over money laundering throughout the global economic market
(Steger 2017). The money laundering has some of potentially degrading and devastating
consequences related to economic, social and security sources. The approach provides the direct
fuel to public officials who are corrupt, the terrorist, the dealers of drug and the arm dealers who
are illegal by origin for the operation and the expansion of their criminal enterprises. According
to Setayesh and Mackey (2016) this particular crime has become international in the scope and
the aspects related to finance through out the international market have become more complex
for the reason of the humungous advances within the field of technology and the context of
globalization of the financial services within the range of industry. The issues and challenges
related to money laundering is not a major problem among global financial markets and the
offshore centers but also regarding emerging markets. Since the markets that are emerging open
their economic and financial sectors, they tend to be one of the increasingly accessible targets for
the activities related to money laundering. There have been initiatives and some of the increased
efforts by financial market authorities for combating this particular activity for shifting activities
to the emerging markets (Momoh 2015). The major impact of money laundering is over the

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economic sector specifically within the employment private sector within the entire global
market.
Impact and threat of Money Laundering
The concept of the economic globalization is a far more complex concept than the
suggestions by the international finance and the transnational corporations. There lies both a licit
and illicit global economy. With the emergence of the new era of globalization, the world is
shrinking and shaping within the international relationships and the domestic politics (Brenig,
Accorsi and Müller 2015). The approach of globalization has expanded the opportunities of some
of the free and enhanced market capitalism that has been resulting in some of the new and major
risks related to money laundering. The context of globalization has turned the entire system of
international finance to the dream of the money launders. Since the context of globalization
refers to an overarching phenomenon of the globe, it is essential to understand the global threat
related to money laundering that has crossed the international boundaries.
The impact of the money laundering was recognized by the organization for economic
cooperation and development. The issues of money laundering has posed some of the serious
threats to the national economy.
Among many, the essential impact of the money laundering is the undermining of the
legitimate private sector. The challengers or the money launders uses the front companies for
proceeding the illicit activities with some of the legitimate funds for hiding their gains that are ill
gotten (Gachúz 2016). The principles of management of the organizations with criminal minds
are not at all consistent with the principles of free traditional market regarding the legitimate
business that results in furthermore macro economic impacts.

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The second important effect of money laundering has been the undermining of the
integrity related to the financial markets. The institutions of finances that rely over the various
procedure of the crime tends to additional issues has been adequately utilizing and managing the
liabilities and the operations.
The loss over the control and the power over the economic policy is the next impactful
factors or the resultant of money laundreing (Srinath 2018). This is because in most of the
market countries that have been emerging results in the loss of the control of the economic policy
by the government.
According to Glukhov, Ostanin and Rozhkov (2015) money laundering adversely effects
the currencies and the rate of interest since the launders reinvest their relevant funds where the
schemes have lesser chance to get detected. The approach of money laundering furthermore
increases the relevant threat of the instability of money for the misallocation of all the relevant
resources from the distortions within the assets and the commodity prices. The threat also
includes the chances of the inexplicable changes regarding the monetary demand and increasing
rate of volatility of the international capital flows and the rate of exchange. The economic
distortion and instability is the main threat and the impact of the money laundering throughout
the international economy. The money launders invest their funds and belonging to the activities
that are not economically beneficial to the country of the location of funds (Hilgers 2014).
Besides, towards the extent that the financial crime and money laundering redirects the funds
from the investments to the low quality investments that hide the economic growth. The loss of
revenue is another of the effects of money laundering infused by the notion of globalization. As
per the analysis by Setayesh and Mackey (2016) money laundering targets and challenges the
initiation and efforts of many of states for introducing the reforms to the economy through the