The global business environment Essay Example | Topics and Well Written Essays - 750 words

The global business environment - Essay Example Counterfeit products are being increasingly traded along different parts of the globe with special relevance to regions like Asia and China and also pertaining to Middle East countries thereby reflecting a global concern (OECD, 2008, p.66). Issues Learnt The rise of counterfeit activities across the retail paradigm especially related to premium or luxury category commodities creates an issue of real concern. Emergence of counterfeit activities on such a large scale causes not only the decline in the sales of the original commodity but also tends to reduce the value of the original brand. These commodities being hard to identify relating to the fakeness involved are openly traded along different regions thereby affecting the market share and brand equity gained of the original premium priced commodities. Moreover the emergence of purchase and sales activity of luxury retail products along the online paradigm like eBay enhances the concern of luxury retail groups like LMVH. This compan y had been broadly affected owing to the sales of pirated commodities carrying its brand name through the online sales network. Owing to the above reason the retail and other consumer goods companies are facing loss of brand value that is being seized by the growing potency of the counterfeit market emerging around the globe (Kapferer, 2012, p.467-468). However further research shows that the rise in the counterfeit market for luxury retail goods in the global scenario happens to enhance the opportunity to further innovate and create. Opportunity arising from the emerging threat in the luxury retail scenario is thus contributing to the development of enhanced competition in the global paradigm. The luxury retailers are now being made bound to further think of adding value to the products produced and traded and also in the paradigm of communication through green washing activities related to advertising. Such endeavors are being taken to sustain their place in the competitive market (Lin, 2011, p.27-28). Three Unexpected Facts Research made pertaining to the rise in the global counterfeit market establishes some unexpected facts that can be represented as follows. Firstly the growth of the counterfeit market is found to be fuelled by the factors like recessionary market and economic trends coupled with the development of electronic commerce activities. The slump in the economic and market situation leads the developing market zones like Africa and China to become the hub centers for trading of counterfeit goods in an increased fashion. These commodities being traded on a virtual paradigm further enhances the global threat emanating from such. Secondly the absence of effective intellectual property legislations further contributes in the development of trade of counterfeit products along emerging markets, revenue earned from which is used for funding terrorist and criminal operations (Mueller, 2011, p.37-38). Thirdly the government bodies of emerging economies like China are found to encourage the growth of such counterfeit product markets. Local Chinese manufacturers in a market deprived of intellectual property and other legislations related to curbing criminal acts are increasingly producing counterfeit products. The government body argues that creation of such local production units contributes in job creation and revenue enhancement (Conklin, 2010, p.267). Discussion