What Is Counterfeiting - the Positive Effects of Counterfeiting

A Final Exam Business Ethics Research Paper by

Huyen Nguyen (Hayley)

Student ID: 30110516

Submitted to Dr.Allan Witz

BC 306

City University of Seattle & Banking Academy of Vietnam Program

January 7, 2017

[pic 1]

                                                       Counterfeiting Definition

In recent years, counterfeiting is now become one of the most persistent problem of society. What is Counterfeiting? According to International Anti-Counterfeiting Coalition, “Counterfeiting is a federal and state crime, involving the manufacturing or distribution of goods under someone else's name, and without their permission. Counterfeit goods are generally made from lower quality components, in an attempt to sell a cheap imitation of similar goods produced by brands consumers know and trust.” (What is Counterfeiting, 2016).

Negative consequences that Counterfeit goods brings to society is not small, it affect the financial, health of the consumer; it undermine the belief of consumers to the transparency of commodity markets and decrease reputation of the authentic manufacturers. Therefore, we cannot underestimate this problem. This paper will analysis the current worldwide counterfeiting problem, trace its origins and find its effects on society.

                                      Why People Make Counterfeit Goods?

Have you ever like some stuffs so much but you cannot afford for it? Would you buy the “exactly look the same” one but only with half the price? Of course, yes! Everyone like cheaper price, sometime people will not care about the quality of the product, they just care about the price. The cheaper the price is, the more they want to buy it. Where there is demand, there will be supply. Unscrupulous manufacturers steal the idea, the grey matter… from the authentic manufacturers to product fake goods and make many profits from it. They does not care about business ethics, they just care about the how much money they can get. It is the reason why counterfeit goods come to the market.

                            The Negative Effect of Counterfeiting

According to Kevin Lewis: “Almost any product can be counterfeited. No product is too simple or too complicated to counterfeit, as long as the illegal profit margin is attractive enough.” (Lewis, 2009). Nowadays, we can easily find counterfeits everywhere and it could be anything, from luxury stuffs to very simple things that we use every day. Counterfeits can be clothes, electrics, pharmaceuticals, foods… and even money can be counterfeited. Harmful effects of counterfeiting and piracy are unimaginable.