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


Hudson, J. and Jones, P., 2003. International Trade in 'Quality Goods': Signalling Problems for Developing Countries. Journal of International Development, 15 (8), pp. 999-1013.

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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.


Item Type Articles
CreatorsHudson, J.and Jones, P.
Uncontrolled Keywordstrade policy,international linkages to development,standardization and compatibility (l150),information and product quality,international trade organizations (f130),role of international organizations (o190)
DepartmentsFaculty of Humanities & Social Sciences > Social & Policy Sciences
Faculty of Humanities & Social Sciences > Economics
ID Code10129


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