Why is there a market for counterfeit goods?, economics homework help

Chp3&4Have you ever knowinglypurchased a counterfeit product – perhaps a purse or a wallet or maybe a watchfor example. What are some of theimplications for your purchase decision for the real company as well as for theentrepreneur selling the counterfeit product. Topics to consider include:1. Why is there a market forcounterfeit goods? 2. How does this market benefitsellers? 3. What does it mean for thecompany producing the real product? 4. Where was the counterfeitproduct likely to have been made? 5. How do counterfeit productshelp an economy?  How do they hurt it?6.  How do decisions to buycounterfeit items influence new product development policies atcompanies? 7. Would a legal system thatprotects property rights changes any of your answers?Chp 5Working Conditions in a Chinese FactoryThe closing case describes the deplorable workingconditions at the Metai factory in China that supplies computer parts directlyto U.S. computer maker Dell, and indirectly to Hewlett Packard and Microsoft.Workers at the factory work long hours doing monotonous tasks and have just twodays per month off.  Wages are very low, and employees are forbidden toconverse, listen to music, or even take bathroom breaks while on the job. When alerted to the conditions at the factory in early 2009, all threecompanies expressed dismay and promised prompt investigations and appropriateaction, however, by 2011, no efforts to improve the situation for workers atthe factory had been made.1.  What enables the owners of the Metai factory profiledin this case to get away with such awful working conditions?2.  Should U.S. companies like Microsoft, Dell,and Hewlett-Packard be held responsible for working conditions in foreignfactories that they do not own, but where subcontractors make products forthem?3.  What labor standards regarding safety,working conditions, overtime, and the like should U.S. companies hold foreignfactories to: those prevailing in that country or those prevailing in theUnited States? 4.  Do you think the U.S. companies mentioned inthis case need to make changes to their current policies?  If so,what?  Should they make changes even if they hinder their ability competein the marketplace?