Reading Comprehension

In the global economy of the 21st century, intellectual property is the principal engine for the creation of wealth. According to the State Department, intellectual property protection was vital to more than half of U.S. exports in the past decade, compared to less than 10% fifty years ago. Global piracy results in the annual loss of $250 million in sales and tax revenue for the United States while simultaneously threatening American competitiveness and jobs.

Rampant piracy of software, video games, books, and magazines, as well as the widespread counterfeiting of pharmaceuticals, electronics, and auto parts is an ever present danger for American manufacturers and workers, with the loss of hundreds of thousands of American jobs each year directly attributable to piracy and counterfeiting. According to the Department of Commerce, the nation's auto industry alone could hire an additional 200,000 workers if counterfeiting were eradicated.

The very nature of a counterfeit product makes it inherently difficult to detect, and counterfeit goods, often of inferior quality, pose a threat to consumer safety, particularly when they get into legitimate distribution channels. Therefore, while 20 percent of foreign-made counterfeit consumer products on store shelves were found to be substandard, according to a recent nationwide inspection, this number almost certainly underestimates the extent of the problem. The inspection revealed food laced with industrial chemicals, baby clothes contaminated with toxic chemicals, and cell phone batteries liable to explode under certain conditions. Recently, defective tires from abroad were found to have caused an accident in Pennsylvania resulting in two deaths.

Furthermore, transnational organized crime rings and terrorist networks are major players in the international supply chain of pirated and counterfeit goods, presenting a major threat to national security. International piracy and counterfeiting are serious issues with grave ramifications beyond economic loss, and immediate steps must be taken to address and eliminate these issues


It can be inferred from the passage that which of the following is true of foreign-made counterfeit products?


(A) Some instances of chemical contamination of such products are currently undetected before the products are released to the public.

(B) Their manufacture and importation is facilitated by several well-known transnational organized crime rings based in strategic countries.

(C) They directly cause fatalities in many of the countries which import them without strict safety regulations.

(D) Individuals who sell them in the U.S. know they are counterfeits.

(E) The governments of countries in which they are manufactured do not take steps to prevent their export to the U.S.



Can anyone explain this with reasoning ?