4.2.1X Global networks and flows: Counterfeit goods

Question 1

Definition

Answer 1

Imitation of genuine products and selling them under the guise of the real thing

Question 2

Problem

Answer 2

Global market is estimated to be worth $1.9 trillion

Production of counterfeit luxury goods thrives in regions with lax intellectual property enforcement and weak governance.

Question 3

China’s role

Answer 3

China is a major hub for the production and export of counterfeit goods, producing 85% of the world’s luxury counterfeits.

China’s extensive coastline and proximity to major shipping lanes enable efficient transportation of goods to and from coastal ports.

(South China Sea, East China Sea, Yellow Sea)

Question 4

Flows

Answer 4

Transit points with well-developed transportation infrastructure (e.g. Hong Kong), allow easy access to global markets.

Europe and the USA are the main destinations for counterfeit goods due to their large consumer markets and high-income status, which increases profit margins.

Developments in transportation infrastructure have enabled faster transport of counterfeit goods (time-space convergence).