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What causes illegal and unethical practices in business?
- -trade regulations
- -lack of trade regulations
- -lack of enforcement of trade regulations
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Examples of illegal and unethical practices
- -disregarding customs' compliances
- -violating intellectual property rights
- -engaging in unfair business practices
- -abandoning social responsibility
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Illegal transshipments
When goods are transferred through a hird country to avoid tariffs and/or qoutas
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Countries transshipped
China, Armenia, Hong Kong, Russia, Taiwan
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Perspectives about fair and unfair free trade
- -creates properity that can benifit the poor as well as the rich
- -allows the market place to determine tha flow of goods and prices
- -funds political parties in rich countries and sponsors corruption in poor ones
- -hurts the middle class in developed countries (job loss)
- -allows manucturers to search out low wages, desperate workers which fosters the destruction of livelihoods, cultures and enironments
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Customs services activities
- -Monitor imports and exports
- -assess and collect tariffs
- -report import and export against quota
- -protect the country's borders against illegal entry
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Country of origin
- Textiles- where the fabric is knitted or woven
- Apparel- where the most important process or transportation occurs
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Intellectual property
products of human intellect have commercial value
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Copyrights
Literary, musical, artistic works, and software
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Patents
Grants a monopoly for a limited time for the use of the invention
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Trade Secrets
any formula, pattern, idea, physical device or process
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Trademarks
covers words, pictures, symbols or logo
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A licensing contract usually includes:
- -a description of the merchandising property
- -a definition of the product that can bear the property
- -a time frame
- -the responsibilities of the licenser
- -the responsibilities of the licensee
- -the basis of the royalty
- -the amount of the royalty
- -the guarantee or minimum royalty amount
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WTO created:
the Trade- Related Aspects of Intellectual Property Rights (TRIPS)
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A licensing contract
transferring intellectual property right to someone else
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Counterfeiting
forging, copying, or imitating something without the right to do so and with the intent to deceive or defraud
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Grey Market Goods
the original goods but sold by unauthorized vendors
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Counterfeit goods sold everywhere:
- -flea markets and street vendors
- -retail shops
- -internet
- -organized crime has gotten involved
- -funding terrorism
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Knockoffs
- -an imitation of the original usually of lesser quality components and sold at lower prices
- -legal imitations because they carry no trademarks or suggestions that the product is the original design or brand
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Social Responsibility
- involves practices for conducting business in which firms make decisions based on how their actions affect others within the market place
- -fair treatment of the human resources
- -sustaining environments
- -supporting laws
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Codes of Conduct
a statement of principles and standards by which business decisions are made
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Worldwide Responsible Apparel Production
- -19 organizations
- -17 countries
- -they do certification of factories
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The Fair Labor Association
- -12 companies
- -175 colleges & universities
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