How do large drug gangs behave like cartels?

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There are three characteristics that drug gangs and business cartels have in common. They are as follows:

  1. Drug gangs and business cartels come together in order to control the supply of their respective products. Drug gangs and business cartels are very territorial. They work to control the supply of certain products in certain areas, which could be as small as one neighborhood in a city, an entire county, or a group of countries.

  2. Drugs gangs and business cartels band together in order to lessen local (and sometimes worldwide) competitors. Due to the territorial nature of drug gangs and business cartels, any competitors are limited in their abilities to supply and distribute products. For example, if an individual who is not a part of a drug gang distributes drugs in that drug gang's "territory," the drug gang will become violent and eliminate that competition. In business cartels, it is difficult for organizations that are not part of the cartel to supply the products. Any competitors of the business cartel would struggle to thrive due to the dominance of the cartel in the market.

  3. Drug gangs and business cartels control the pricing of their respective products. Both drug gangs and business cartels control the pricing of their products because they are normally the only suppliers in any given area. For example, a drug gang in Chicago would normally control one or more neighborhoods in Chicago, preventing other drug distributors from supplying drugs in those areas. Drug gangs are able to set the prices that they want because there are no competitors to offer better prices.

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