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Effects Of Counterfeit Product On Global Economy Essay

¶ … Counterfeit Product on Global Economy Counterfeiting may be described as crime with 'fakes' comprising a purchase which is alternatively cheap, and the parties involved see this as of low risk in terms of prosecution having light penalties as compared to the large profit which is always made. Counterfeit products trade internationally is approximated to be more than global trade by six percent. The effect is not only felt to business and investment opportunities but also on society and global economy negatively.

Trade involving counterfeit goods is profitable and proofs indicate that on top of connection historically involving organized crime and counterfeit, terrorist groups take advantage of this to get money for their activities globally which is dangerous to the community. The variety of products of counterfeit is very extensive and the tendency shows that counterfeiters have expanded from dealing in luxury goods to exploiting of the consumer goods, even in medicine, vehicle parts, aircraft and baby food. Apart from this being illegal it posses great danger to the safety and health of the public for such products are not passing safety checks. (First Global Congress on combating counterfeit, 25-26 may 2004)

Reports from industry and companies association indicate...

They have many times prove to be adaptable, well organized making them to use greater covert and measures which are sophisticated to keep away from detection and prosecution.
There is growth in counterfeits exports and trans-shipments problem. Shipping of products by counterfeiters globally for final assembly and distribution increases hence reducing seizures risk in the components producing countries. Owners of trademarks are progressively getting product counterfeit and distribution operations in Russia and earlier Soviet Republics; India, the Middle East, China, some Latin countries and Africa. Property intellectual crime makes public and businesses hundreds of billions of U.S. dollars each year, damages innovation and investment, cause economic disastrous for small businesses, severally it escapes taxation due to forged or invalid document if not smuggled of such goods into the countries.

From the statistics of government, anecdotal accounts and press reports shown by individual companies and industry associations reveals that the worldwide increase in the scale of product counterfeit was in 2003. Japan, U.S. And EU…

Sources used in this document:
WORK CITED

Global Congress, (25-26 May, 2004). The First Global Congress to Combat Counterfeiting, WCO Headquarters in Brussels

OECD (1998) Harmful tax competition, journal

Xinhua General News Service, February 13, 2003, Nigeria Reaffirms Efforts to Eliminate Fake Drugs, reporting on survey by the Nigerian government's Institute of Pharmaceutical Research.
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