Why do we have so many counterfeit goods in the market mostly from Asia?
Answer:
To be a little more specific, more than half or even 90% percent of counterfeit came from China. One labor in china is cheap, many developed economies look in to china as a place for manufacture of their goods. Aside from having cheap labor, they have a lot of resources there as well, and cheap raw materials. Since it is technically being done in their country, they have gotten access on how to manufacture the products .
Sad thing is, there is a huge market for cheap products, western influence on other countries is so evident, most asians patronize western brands, so market is huge for this counterfeits.
And the main culprit is , patent rights, not all asian countries have laws on violation of trademarks, if ever they do have, they are not strict on implementing it yet.
this one is a fun one. Designer goods are really just cheap goods that have been differentiated. This allows the producers to have market power, that is price setting power not found in competitive markets. However, these goods are cheap, I mean by that they are really inexpensive to make, they have low variable costs. The market power is really artificial by advertising or tastes and not due to really economic characteristics. So, in the US the market power is protected by law, patent law, this allows the producers to use pricing power. However, in Asia the patents are not enforced so producers trying to charge the higher price to receive economic profit are then under-cut by companies that can make the good for the same price. The price you see overseas is what the price really would be if the monopoly that the designer companies have were not protected by patent laws, and this is the price you would be paying in the US because this is really the competitive price. So when designer, movie, and music persons are crying about, just remember they are protecting their monopoly so they can over-charge and gain monopoly profits.
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers: