Team Names:
Executive summary (3)
Introduction.. (3)
The advantages of purchasing. (4)
Chinese counterfeit electronics
Demerits of purchasing Chinese electronics. (5)
Key findings and recommendations. (6)
Conclusion.. (7)
EXECUTIVE SUMMARY
The main aim of this report is to demonstrate some effects of counterfeit Chinese electronic devices to the consumers. The report generally targets the overview of Chinese counterfeit electronics devices, and the effects it has caused to the economy of most part in the world. The term counterfeit product can be defined as manufactured products that closely look like the original product. Hence, the counterfeit products may have the trademark and copyright infringements of the original producers. Counterfeiting activities can be considered as clandestine; hence it makes it difficult to obtain accurate statistics on the same.
INTRODUCTION
Counterfeit Chinese electronics has both negative and positive effects to the consumers and economy of the world. There is a heated argument on whether Chinese counterfeit electronics should be banned or not. The involved parties have their reasons and evidences to support their argument. Despite the arguments between the involved parties, one thing is for sure, the counterfeit electronic devices have both the negative and positive impacts. In this report, the positive impacts to the consumers and economy has been discussed and highlighted in depth. Moreover, the negative effects have been highlighted and discussed too. In 2012, the European Union published a report that showed 90500 counterfeit electronics were being imported to Europe through illegal means. Approximately 95% of these cases, electronics were seized on the basis of suspicion of infringed trademarks.
THE ADVANTAGES OF PURCHASING COUNTERFEIT CHINESE ELECTRONICS
Counterfeit Chinese electronics have a number of recompense that makes it preferred over the original brands; the advantages are highlighted and explained below.
- Cheap to purchase
Counterfeit electronics devices are relatively cheap to purchase and buy compared to the original products. This gives the low waged workers an opportunity to purchase the devices. The difference in price between an original product and a counterfeit product can be large to almost double the counterfeit product; an example of this can be evident when a product selling $45 can be sold at $13 when it’s a counterfeit of the original electronic.
- Readily available
Authentic electronics are not allowed to be distributed to some selected kinds of retailers, thus they are not available everywhere. However, counterfeit Chinese electronics saturate the markets and can be found almost each and every part of the continent. Moreover, some counterfeit Chinese electronics can be purchased through the internet; this has increased the chances of the availability of these electronics.
- Expendability
Counterfeit Chinese electronics are expendable; one can get a copy of the original product in case of a breakdown. Most people will therefore prefer counterfeit electronics to original products. In addition, the European Union published a report in 2013 which argued that anyone buying the counterfeit Chinese electronic has no intention to purchase the original. Therefore, by purchasing a cheap counterfeit product, consumers are actually initializing the process of promoting the original brand.
THE DEMERITS OF PURCHASING CHINESE ELECTRONICS
There are adverse demerits of purchasing Chinese counterfeit electronics as highlighted below.
- Ineffective functioning
Counterfeit electronics are imitations of the original products. Therefore, they do not serve effectively compared to the original products. In 2008, a research carried out by U.S department of counterfeit Bureau analyzed that 12% of China’s counterfeit products cannot survive for a maximum of one year.
- Destruction of jobs and job opportunities
Counterfeiting activities has a great impact on the employment and employment opportunities. According to a research report published by ICC Counterfeiting Intelligence Bureau, the analysis suggested that, excluding the secondary economic impact on suppliers and retailers, the approximate number of jobs destroyed as a result of importation of counterfeit Chinese electronics was found to be 2.5 million jobs. The most affected countries were the G20 nations. The report clearly analyzed the effects of counterfeit electronic devices.
- Increase in social cost
In most countries where the effect of counterfeit electronics is vast, there is rise in missed sales opportunities and a lot of tax revenue is lost. In addition, there is an increased level in death and injuries to the consumers. A counterfeit electronic device equals more exposure to danger due to its inefficiency. The report study released by ICCWBO on 2008 data, the economies of the G20 lost an approximate amount of US$ 90 billion in tax revenue as a result of importation of counterfeit electronics.
- Fake merchandise of the devices
The quality of counterfeit electronics is always inferior when compared to the original device. These electronic devices do not have manufacturers guarantee or any form of replacement policy. This creates a threat to the consumers incase a device breaks down thus registering a loss when one purchases the device.
- The enforcement of embargo
Most governments have suffered great loses when other governments enforce embargo to some countries that are dominated with counterfeit electronics. This largely affects the economy of the original electronics being exported to the said nation.
KEY FINDINGS AND RECOMMENDATIONS
The report recommends some ways to developing and analysis to curb counterfeiting of electronics. It calls on to consider strengthening legal policies to enhance enforcement and deepening the evaluation of programmed regulatory frameworks.
Protection against Counterfeit Electronics
- Policies and measures
The analysis in this report indicates that the economies of most nations examined, have shown a mechanism in place to curb counterfeiting of electronic devices. They have shown the basic obligations contained in the World Trade Organization’s Agreement signed by all the nations. The World Customs Organization reacts negatively towards China in production of counterfeit electronics. It has impacted professional training to officials in partnership with private sectors to fight against counterfeits.
- Improving efforts to fight counterfeiting activities in China
The issue of production of counterfeiting electronics in China should be addressed by all the world leaders in great force. The improved information and advancement in technology implies the ability of more far-reaching analyses to be conducted within a very short time and on the magnitude of counterfeiting activities in China. In addition, this would provide governments from all over the world with a firm basis for development of more informed policies to combat activities of trading in counterfeiting electronic devices in China.
CONCLUSION
In conclusion, the counterfeit trade activity in China has both the negative and positive impacts to the economy and consumers in concern. The effects are so intense and if no immediate actions will be taken, the economy of most part in the world will fall and as a result economic crisis will follow.
REFERENCES
Barrett, S., Petrof, J., Quintanilla, C., Kurtis (2012). Counterfeit goods. Hamilton, N.J
Lin, Y. -C. (2011). Fake stuff: China and the rise of counterfeit goods. New York
Phillips, T. (2005). Knockoff: The deadly trade in counterfeit goods : the true story of the world's fastest growing crime wave. London:
Counterfeit goods. (2012). New York: Films for the Humanities & Sciences.
