A research on how counterfeiting affects the united states economy

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A research on how counterfeiting affects the united states economy

The Harmful Effects of Counterfeit Goods Arlee Sowder Abstract The business of counterfeit goods is one of the largest underground industries in the world and growing rapidly. The impact on the global economy is in the billions of dollars.

The Health and Economic Effects of Counterfeit Drugs

This article examines the reasons why counterfeiting has become such a lucrative business, the negative and harmful effects counterfeit goods have on industries and consumers, as well as the difficulties encountered in apprehending and prosecuting offenders.

The role of the consumer is explored as a key factor in curtailing the activities of counterfeiters. Introduction From fake handbags to mock medicines, the business of counterfeit goods is one of the largest underground industries in the world and it is rapidly growing.

With cheap overhead, high profits, and cloak-and-dagger business style, these global black market industries are here to stay. A counterfeit good is a product that closely resembles another product in order to trick customers into buying.

Officials and authorities struggle to control the activities of the criminal organizations that are producing and marketing counterfeit goods.

A research on how counterfeiting affects the united states economy

Stopping these enterprises seems doubtful because of the increasingly aggressive behaviors of fraudulent distributors.

The best way to stop the manufacturing of imitated products is to inform consumers of the potential harm these products pose to the United States and its economy. If people refuse to purchase knock-off products, these rogue industries will suffer economically and ultimately disappear.

Harmful Effects American views of counterfeit goods are often unrealistic and far from the truth. When American consumers think of counterfeit goods, fake handbags and mock paintings come to mind. Unfortunately, many citizens do not realize the harmful effects that counterfeit products have on American businesses.

On a broader scale, counterfeit goods account for more than half a trillion dollars each year Levin, The lucrative market of counterfeiting has greatly impacted the electronics industry. As counterfeiters continue to produce fraudulent electronic components, the reputable electronic companies are faced with threatening statistics and slumping sales due to these knockoff parts.

These imitated components are making their way into American distribution supply chains, like Apple and Target. Even the most reputable retailers are troubled by the uncertainty of whether or not their stock or parts are counterfeit Sangani, Americans are often too concerned with paying the cheapest price for their electronics, when they should be focused on the harmful effects that these cheaply made counterfeits could have on their well being.

Faulty batteries or poorly designed transformers are explosive under certain conditions Sangani, Not only are these counterfeit goods harmful to American people, but they greatly impact American businesses as well. The rise of counterfeit products can potentially cause businesses to experience an increase in costs, as well as loss of productivity.

Impact on Employment In addition to lost revenues and negative reputations, counterfeiting immeasurably impacts the employment rates in the United States and in many other countries around the world. According to research analysts, approximately 2.

A research on how counterfeiting affects the united states economy

Many people affected by increasing unemployment rates will go out and find new jobs; however, it is estimated thatworkers fail to find new employment.

Of those who find new jobs, many earned less pay. All in all, the increasing unemployment rates caused by counterfeit markets have and continue to devastate personal financial situations for many families, as well as burden state and federal welfare programs.

If counterfeiting continues to grow, which researchers predict it will, the unemployment rate will continue to rise in the United States and around the world.

Counterfeit Goods and the Internet While sales of counterfeit goods rapidly increase, so do the fraudulent sales of counterfeit products on the Internet.

Because online auction sites, like eBay, have no warranties of authenticity and quality control is nonexistent, counterfeiters can easily distribute misleading or fake products around the globe. This statement might be accurate; however, they forgot to mention they have become the largest online venue for counterfeit goods.

Sincethe eBay community has evolved into a nation of 81 million visitors each month. Experts advise people not to use online auction sites because they can potentially harm legitimate merchants and leave buyers and sellers with great risks of uncertainty when it comes to trading over the Internet.

Online counterfeit sales cause consumer confusion across the United States and other parts of the world Levin, Counterfeit Medicines Lastly, and most importantly, the American people should be aware of counterfeit medicines. Imitating pharmaceutical formulations poses a serious and fast-spreading threat to the health and safety of the people.

Like retail merchants, counterfeit medicines create multitudes of problems for legitimate drug manufacturers by undermining their reputations and revenues. Due to the increasing demand for cheap medicines and low production costs, counterfeiting drugs has become a vast and extremely lucrative market.

Inthe U. Almost any pharmaceutical formulation can be counterfeited.and impacts of counterfeiting and piracy delineated, but not quantified, in their analysis.

We estimated wider economic costs associated with the effects of counterfeiting and The economic impacts of counterfeiting and piracy. frontier economics.

Economic theory predictions and the bulk of academic research confirms that wages are unaffected by immigration over the long-term and that the economic effects of immigration are mostly positive for natives and for the overall economy.

United States and EU Member States provides an insight into which countries are the biggest exporters of fakes and the types of products that are being counterfeited. The top five suppliers of counterfeit goods to the United States in , were China, Korea.

The economic impact of counterfeiting Article Feb 10, "The United States economy is literally being stolen out from under us while those Neros in Congress continue to fiddle.

If this. United States International Trade Commission Investigation No. USITC Publication (amended) November China: Intellectual Property Infringement, Indigenous Innovation Policies, and Frameworks for Measuring the Effects on the U.S.

Economy. Address all communications to CEPR Center for Economic and Policy Research. For the United States, the alleged North Korean counterfeiting represents a direct attack on a protected U.S.

national asset and may provide a rationale to impose financial sanctions on the DPRK.

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