Counterfeiting in China
China has been undergoing rapid economic growth since the adoption of its open door policy in 1979 . It keeps showing the world its enormous potentials in market economy. However in the recent decades, there has been increased awareness of unethical business practices in China. The production and purchase of counterfeiting goods has been one of the major issues. The International Chamber of Commerce (2004) estimates that 7 per cent of world trade is in counterfeit goods, and China has built a reputation as the source for such products .
The conduct of counterfeiting can causes seriously social, economic and political problems. For example, studies have shown that counterfeit goods lowers consumers’ confidence in legitimate brands and company reputation, impacts upon consumers’ perception of genuine articles, and poses potential threat to consumer health and safety. Every year Microsoft loses nearly $10 billion due to software piracy. Hundreds of medical accidents due to the mistaken of counterfeiting drugs happens in China every month . Given the widespread effects of counterfeiting products, many researches have been done to investigate the reasons that why there are so much counterfeits in China. Most of these studies are related to supply side, suggesting that the desire for excessive profit and lack of the independent innovation are the major reasons for these activities. Also insufficient protection for Intellectual Property from the government worsens the situation by given an easy pass for counterfeiting industries . However, consumers are the actual force behind this trade. Even if the government and enterprise control counterfeit sales through the various measures in short time, because of the existence of counterfeit market demanding, consumers will also look for counterfeit products though all kinds of channel. So to understand the counterfeiting problem from the angle of consumers’ intention to purchasing counterfeit goods is crucial to solve it.
The conduct of counterfeiting can causes seriously social, economic and political problems. For example, studies have shown that counterfeit goods lowers consumers’ confidence in legitimate brands and company reputation, impacts upon consumers’ perception of genuine articles, and poses potential threat to consumer health and safety. Every year Microsoft loses nearly $10 billion due to software piracy. Hundreds of medical accidents due to the mistaken of counterfeiting drugs happens in China every month . Given the widespread effects of counterfeiting products, many researches have been done to investigate the reasons that why there are so much counterfeits in China. Most of these studies are related to supply side, suggesting that the desire for excessive profit and lack of the independent innovation are the major reasons for these activities. Also insufficient protection for Intellectual Property from the government worsens the situation by given an easy pass for counterfeiting industries . However, consumers are the actual force behind this trade. Even if the government and enterprise control counterfeit sales through the various measures in short time, because of the existence of counterfeit market demanding, consumers will also look for counterfeit products though all kinds of channel. So to understand the counterfeiting problem from the angle of consumers’ intention to purchasing counterfeit goods is crucial to solve it.
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