Question

A manufacturer of jewelry imitates the style of a popular and expensive brand using manufactured stones rather than real gemstones and lesser grade metals rather than silver and gold. The manufacturer packages the jewelry in boxes of the same color imprinted with an almost identical logo. About 85 percent of the company's sales are through Internet sales. This example illustrates the competitive risk of __________ that threatens companies that use the differentiation strategy.

Answer 1

The correct answer is: counterfeiting.

Step-by-step explanation:

Falsification is an act consisting in the creation or modification of certain documents, effects, products (goods or services), in order to make them appear as true or to alter or simulate the truth.

Counterfeiting is considered a crime of “white gloves”, since it lacks violence and generally involves commercial transactions. Counterfeits can be made, among others, with respect to public or private documents, coins, bills or other securities, art and products trademarks .

In the first cases, it is a crime that affects the public faith, and may become a form of fraud, while the latter is understood to be a vulnerability of industrial property (being copies without licenses, to be sold as if they were original ).