Counterfeit products and their demerits on the economy.

  

Date Posted: 3/21/2012 3:48:10 AM

Posted By: SimonMburu  Membership Level: Silver  Total Points: 838

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Counterfeit products are imitations of original products and they do not serve effectively as the original ones.

Here in Kenya when a new product emerges in the market it's only a few weeks or months before you get it's counterfeit supplies at a lower price that the real one. The culprits of this business are said to be learned people some of whom are prominent people in the government, the reason why almost every product in Kenya has its fake counterpart.

From electronic products like mobile phones and household gadgets to edible goods like drinks (especially alcoholic) to medications.

Consequences of counterfeit products to the economy come;
1. Loss of potential revenue - The government suffers losses of large amounts of revenue to be paid on imported goods since the market is dominated with counterfeit ones which are manufactured locally.

2. Enforcement of an embargo - When governments enforce embargo to some products due to counterfeit domination in their country, it largely affects the economy of the products' export country. Example if America forbids the importation of coffee from Kenya, we will end up exporting the product to other countries at cheaper prices. The consequences of these products have even led to mass destruction like the end of Motorola, the company had to isolate itself from the mobile phone industry due to heavy losses brought about by the counterfeit supplies.

The Kenya Bureau of Standards (KEBS ) has been on the front line in fighting this crime and it is educating citizens on the disadvantages of these products and how to distinguish real from counter ones. Counterfeit products are cheap but they can lead to heavy losses in the long run, the durability is also compromised.

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