International Trade in 'Quality Goods': Signalling Problems for Developing Countries

John Hudson, Philip Jones

Research output: Contribution to journalArticle

47 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)999-1013
Number of pages15
JournalJournal of International Development
Volume15
Issue number8
Publication statusPublished - 2003

Keywords

  • Trade Policy
  • International Linkages to Development
  • Standardization and Compatibility (L150)
  • Information and Product Quality
  • International Trade Organizations (F130)
  • Role of International Organizations (O190)

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