International trade in 'quality goods': signalling problems for developing countries
Consumers evaluate product quality with information signals such as brand name giving an advantage to established firms over other firms even when introducing a new product. Another signal is 'country of origin' and, as high-income countries focus more heavily on higher quality goods, there is a tendency for consumers to associate quality with a country's income per capita. Thus new firms from developing countries face particular problems in export markets. International standardization offers a potential solution to their problem. However, analysis of the use of ISO 9000 suggests that it is difficult to eliminate the informational asymmetry. Copyright Â© 2003 John Wiley & Sons, Ltd.
Volume (Year): 15 (2003)
Issue (Month): 8 ()
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