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counterfeiting goods =Fake Goods
The impact of counterfeiting goods can be seen in obvious and not so obvious ways. Counterfeiting is not a new occurrence in the market. The English counterfeited Chinese porcelain in the 1700s; which they sold in the European market as Chinese porcelain. Their counterfeit products were not intended for the Asian market; as the products counterfeited in Asia are intended for the western market.
Selling counterfeit goods is a crime, and resources used to hire personnel to stop the importation and sales of counterfeit products increase the cost of fighting crime. Customs officers and undercover officers could spend their time focusing on other criminal activities. The money spent to arrange sting operations, and the court cost to prosecute retailers could be better used in the communities.
Counterfeit goods lower the value of the authentic product and impact sales negatively. Higher end merchandise that depends on exclusiveness to market their brand has lost core customers because of the glut of knock off products. Customers switch to lesser known brands that are not being copied.
Counterfeit contributes to waste which have a negative impact on the overall economy. Knock offs are of low quality, and consumers waste money buying a product that does not last very long. Consumers receive very little value for their money. The value aspect of product consumption becomes lost in the counterfeit trade and the consumers lose every time. Counterfeiting relies on the consumers to overlook the importance of value.
Investors lose their investments when they invest in sound reputable companies who cannot maximize their profit potential because they cannot sell their product for what it is worth. It is difficult to compete with counterfeiters because they do not have the initial cost of bringing a product from inception to market. They devalue the hard work of creative designers and innovative inventors.
Retailers who sell counterfeit wares do not pay taxes; importers do not pay a fair amount of duty when they smuggle the goods into the country.
All these negatives impact work together to ultimately undermine an economy that is not set up to compete with business that does not adhere to the rules of fair trade. Entire industries are being undermined by the counterfeiting trade. Cellular phone accessories, designer goods, sporting goods and men and women apparel have all been impacted by the sale of low priced counterfeit goods.
Counterfeiters benefit from the hard work of others, and squander government resources while short-changing consumers all at the same time
