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 language | English |
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Pages (from-to) | 999-1013 |
Number of pages | 15 |
Journal | Journal of International Development |
Volume | 15 |
Issue number | 8 |
Publication status | Published - 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)