It is really quite a simple concept:
If the balance rim contains screws and is partially cut through to appear as though it was a compensated balance (which it isn't), then it is pretending to be something that it is not. It is a fake, plain and simple. It doesn't matter what the rest of the watch looks like, nor what name is on it, nor where it was sold. If it was made in Switzerland, then it is a Swiss fake.
Modest watches, created and marketed worldwide, as inexpensive alternatives to more sophisicated watches do not have imitation compensated balances. Knowledgeable people do not refer to these as fakes unless their plate design and names closely approximate those of watches of higher grade built by well-known manufacturers.
Having said that, Swiss fake watches in good repair can keep time within a couple of minutes a day, which is adequate for most purposes. Some collectors seek these out and make a nice collection of them.