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Words: | Submitted: Tue Jun 20 2006
... fakes is coming into the world market. According to Business Week (February 7, 2005), counterfeiting accounts for 5% to 7% of world trade. This is one of the biggest challenges in the era of globalization. Multinational companies and outsourcing companies affected by this counterfeits' problem as well. The article states that businesses outsource some activities such as production to less developed countries, for example China, which has a lower labor cost. Their aim is to export those products to sell in the foreign market. However, the same production also creates counterfeits and supplies them to both its local markets and the rest of the world. Ultimately, counterfeiters cost the original companies a lot of money. Year by years, the original companies put maximum effort to research and develop the new products to response with the consumer's behavior and market trends. However, those original works were imitated aggressively by the counterfeiters. ...
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