Counterfeits

Counterfeits – Business Ethics 1) Explain the link between in rise of globalization and the surge in counterfeit products. From cultural and legal perspective, how would you evaluate counterfeiting as an ethical issue for business (a) in the West and (b) in the developing world? What potential solutions could we think of to address counterfeiting?
The rise of globalization, as everything, has good and bad consequences and one of that is the increase of counterfeit products.
With globalization, while population to trade with your products increase and the possibility to have an extra-demand also generates a public-demand, that is not able to pay the price of your product or think that the relation price-quality is not enough.
So, with this unsatisfied demand, by logic, appear producers of counterfeits producing goods with less quality but a lower price that can satisfy the needs of the big population worldwide.
Example: Firm A = 1 product
Before globalization = 10 buyers for 100 target market=> Difference: 90
After globalization= 100 buyers for 100.000 target market => Difference: 999.900
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So the increase of buyers is multiplied by 10 but the possible buyers (target of product) is multiplied by 1000… producing a huge increment in people that wants the product but doesn’t want to pay the price.
As an ethical issue, counterfeit is viewed differently depending on we are, West world or in developing world.
a) On West side, the developed world, I think it’s viewed as a bad thing that makes an unfair competence creating a devaluation of the job done by national companies. Also, is a general known that the counterfeits are produced by exploited children in very poor conditions (to have the possibility to reduce the price). Even so, there are so many people buying counterfeits of all products but in majority clothes and technology items (in developed world we have ”fear” to buy things as foot or cosmetics due their direct influence on our health.
I think that is viewed as unethical but as always we will continue buying? Why buy one thing far more expensive when I could buy it at the next street cheapest and without notice the different of quality?

b) In developing countries, where purchasing power is fewer, I think that fake products are more accepted and viewed as normal thing. Furthermore is where are produced so the selling is normal. As a ethical think, I think that is viewed ethically because they know that all the “famous-big” companies are using children labor too and doing continuously illegal things.
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But otherwise, the possibility to have a cheapest product and can sell it in a big number to developed countries and help to growth I thought that it’s see as a opportunity.

To avoid counterfeiting there is already a lot of laws prohibiting the selling and the producing of fake products but still happening.
In the article said that companies are trying to send a message to consumer to convince them that buying fake products is dangerous. I think that is a good way to follow and focus because the production it’s almost impossible to stop.
Other way to try, is following the product to seller to distributor. I mean, if the police look a person selling counterfeited products on street (for example) not hold him if not following and try to know where he goes to take the products that he will sells and try to catch the root.