WORLWIDE THREATS IN THE BUSINESS WORLD.

In all product-based industries, it is simple to find counterfeit goods, which puts all businesses that use trademarks and intellectual property at risk of engaging in illegal counterfeit trading. As these products penetrate the intricate supply chains of multinational corporations, it also exposes the businesses who manufacture real products to additional risks.

The adverse impact on businesses, resulting in losses in terms of profitability, brand equity, and brand value, along with higher spending on countermeasures. Additionally, it deters businesses from investing in immaterial assets and reduces their propensity to spend in innovation, which obviously has an impact on their long-term competitive advantage. Additionally, it restricts the expansion of small and medium-sized businesses (SMEs) and even deters local businesses from joining the market.

Exporters typically tend to be larger, more productive, and pay higher wages and, as a result, perform better than non-exporters, despite the fact that the performance characteristics of trading firms and organizations that do not trade have been extensively documented in the literature on international commerce.

We must take into account the diversity of businesses and their involvement in international marketplaces when examining the effects of counterfeiting on firm survival. The study question "How much does it matter to be active in foreign markets in a world where counterfeiting is the rule?" is based on the knowledge-based view of multinational enterprises. (Bernard and Jensen, 1999, Melitz, 2003).

As a result, we have a more thorough understanding of the connection between counterfeiting and company survival, and we have proposed an integrative framework that incorporates findings from many literatures and according to this, the likelihood of leaving the market is unaffected by the presence of counterfeit goods in the same industry, but it does change when downstream or upstream sectors are involved in counterfeiting.

What are your thoughts on the market's saturation with bogus merchandise?

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