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Dear Group A

Your Project title is "Country-Of-Origin Effects on Product Evaluations"

Evaluation: 20% Weight-age

Group Project
 
The group project is one of the most important learning tools of the course.  Each group will comprise of
4 students.
 
This is a highly interactive real life project, which requires a high degree of analysis and tangible
recommendations.  Your group is required to identify a company as well as project.  Some projects are
identified at the end of this note.  The deliverable of the project includes:
 
1.      Project proposal - Within 5 days (Soft Copy)
2.      Interim Report - Within 12 days (Soft Copy)
3.      Final Report - Before End Term Exam (Hard Copy)
4.      Presentation - Before End Term Exam (Soft Copy)
 
Project Proposal Format
Your proposal should include following:
 
 Introduction/Background of the project
 Rational for taking the project
 Objective of the study
 Scope of the study
 Methodology (provide flow diagram)
 Expected outcome
 Project schedule
 
Interim Report Format
 
Interim report is like progress report and should be about 10 pages (maximum).  It should include
following:
 
 Introduction/Background of the study
 Objective of the study
 Scope of the study
 Methodology (provide flow diagram)
 Existing System
 Data collection
 Data analysis
 
Final Report Format
 
The final report has to be prepared and submitted in the format encompassing the areas mentioned here
under the heading of “Contents”.
 
Executive Summary
Acknowledgments
List of Abbreviations
List of Tables
List of Figures
 
1.      Introduction/Background of the study
2.      Objective of the study
3.      Scope of the study
4.      Methodology (provide flow diagram)
5.      Existing System
6.      Data collection
7.      Data analysis
8.      Proposed System
9.      Recommendations
 
References
Appendix
 
Ground Rules
 
 The entire report must be in the range of 20 pages.
 
 The Final Report format as mentioned in the heading “Contents” is not sacrosanct.  It is
subject to change depending on the sector specific requirements that need to be
incorporated and highlighted so as to improve the understanding of International
Business
 
 Grading of the report will be done on the strength of the analysis and explanation
therein.
 
 Please incorporate diagrams wherever possible.
 
Presentation
 
         The presentation should cover both the analysis of primary and secondary data.
         Each presentation will be of 15 minutes with 10 minutes given to the group to highlight the
key findings and 5 minutes for open discussion with the students.
 
Deadlines : One weak before End Term Exam.
Description of the country of origin principle
The country of origin principle states that, where an action or service is performed in one country
but received in another, the applicable law is the law of the country where the action or service is
performed. The opposing principle is the country of reception principle. For example, if a sale of
goods is made over the Internet from a website in France to a purchaser in Italy, the country of
origin principle would be said to apply if French law applied to the transaction, and the country
of reception principle if Italian law prevailed.

[edit] Application of the country of origin principle


Directive 2001/31/EC 1, commonly known as the Electronic Commerce Directive, establishes
that the country of origin principle shall prevail in European law for most, but not all,
Information Society Services. Recital 22 of that Directive states:

Information society services should be supervised at the source of the activity, in order to
ensure an effective protection of public interest objectives; to that end, it is necessary to
ensure that the competent authority provides such protection not only for the citizens of
its own country but for all Community citizens; in order to improve mutual trust between
Member States, it is essential to state clearly this responsibility on the part of the
Member State where the services originate; moreover, in order to effectively guarantee
freedom to provide services and legal certainty for suppliers and recipients of services,
such information society services should in principle be subject to the law of the Member
State in which the service provider is established.

The extent to which the country of origin principle should be applied to provision of services
generally was a main point of political controversy 2 in negotiation of the proposed Services
Directive.

[edit] Political objective of the country of origin principle


The "country of origin principle" is a rule that is sometimes advanced with the intention of
facilitating the free movement of goods or service providers so as to encourage cross-border
competition or, possibly, to encourage individuals or companies to test other markets without
having to establish in the target market. It is also sometimes intended to free providers of goods
and service from the obligation to accommodate multiple regulatory regimes when trading across
borders from a single location.[citation needed]

Rules of origin are used to determine the country of origin of a product for purposes of
international trade. There are two common types of rules of origin depending upon application,
the preferential and non-preferential rules of origin (19 CFR 102). The exact rules vary from
country to country.
[edit] Non-preferential
Non-preferential rules of origin are used to determine the country of origin for certain purposes.
These purposes may be for quotas, anti-dumping, anti-circumvention, statistics or origin labeling.

The basis for the non-preferential rules originates from the Kyoto convention[1] which states that
if a product is wholly obtained or produced completely within one country the product shall be
deemed having origin in that country. For a product which has been produced in more than one
country the product shall be determined to have origin in the country where the last substantial
transformation took place.

To determine exactly what was the last substantial transformation, three general rules are
applied:

1. Change of tariff classification (on any level, though 4-digit level is the most common)
2. Value added-rule (ad-valorem)
3. Special processing rule, the minimum transformation is described. For instance, in the
EU non-preferential rules of origin for T-shirts (HS6109), the origin is supposed to be in
the country where the complete making-up was done.[2]

According to the non-preferential rules a product always has exactly one country of origin.
However, the non-preferential rules may differ from country to country; the same product may
have different origins depending on which country's scheme is applied. Usually it is the rules of
the country into which a product is being imported that apply.

[edit] Preferential
Preferential RoO are part of a free trade area or preferential trade arrangement which includes
tariff concessions. These trade arrangements might be unilateral, bilateral or regional (also
sometimes called multilateral) trade arrangements. The rules of origin determine what products
can benefit from the tariff concession or preference, in order to avoid transshipment.

[edit] United States


Section 304 of the Tariff Act of 1930 as amended (19 U.S.C.1304) requires most imports,
including many food items, to bear labels informing the ultimate purchaser of their country of
origin. Meats, produce, and several other raw agricultural products generally were exempt. The
2002 farm bill (P.L. 107-171, Sec. 10816), however, contains a requirement that many retail
establishments provide, starting on September 30, 2004, country-of-origin information on fresh
fruits and vegetables, red meats, seafood, and peanuts. However, the consolidated FY2004
appropriation (P.L. 108-199) signed January 23, 2004, delays this requirement for two years
except for seafood.[3]
Country of origin (often abbreviated to COO), is the country of manufacture, production, or
growth where an article or product comes from. There are differing rules of origin under various
national laws and international treaties.

Country of origin as a marketing strategy


From a marketing perspective, country of origin is a way to differentiate the product from the
competitors. Schooler (1965)[1] is generally considered as the first researcher to empirically study
this effect. He found out that products, identical in every respect except for their country-of-
origin, were perceived differently by consumers. Since then, more than 1000 studies have been
published on this subject.[2] This research shows that the country of origin has an impact on
consumers' quality perceptions of a product, as well as ultimately preference for and willingness
to buy that product. Furthermore, several studies have shown that consumers tend to have a
relative preference to products from their own country[3] or may have a relative preference for or
aversion against products that originate from certain countries (so-called affinity[4] and
animosity[5] countries). The effect of country of origin is however debated,[6] with some studies[7]
questioning the relevance of academic research on country-of-origin effects for business
managers. Overall, academics seem to conclude that the country with which a product is
associated with, the so-called country-of-association[8] significantly impacts consumers' product
evaluations and choice, but that given the number of publications available, care should be given
whether yet another study on that effect is needed.[9]

[edit] Country of origin contextual importance for consumer choice

Consumers tend to utilize the country of origin more when they are less involved and less
familiar.[10] Consumers further tend to use country of origin more as a decision tool when they
consider luxury products.[11]

[edit] Country of origin labeling requirements


While many products made within the European Union carry the country of origin label or
marking "Made in EU" or "Made in EC", some manufacturers in Europe use "Made in Europe"
(made anywhere in Europe). Although Europe is not a country. A similar marking, "Made for
Europe", (made anywhere else in the world, but not in Europe) could lead to consumer
deception, whereby a buyer not proficient in English may come to believe from looking at the
label that the non-European product he is interested in is made in Europe.

[edit] Country of origin in international trade


When shipping products from one country to another, the products may have to be marked with
country of origin, and the country of origin will generally be required to be indicated in the
export/import documents and governmental submissions. Country of origin will affect its
admissibility, the rate of duty, its entitlement to special duty or trade preference programs,
antidumping, and government procurement.
Today, many products are an outcome of a large number of parts and pieces that come from
many different countries, and that may then be assembled together in a third country. In these
cases, it's hard to know exactly what is the country of origin, and different rules apply as to how
to determine their "correct" country of origin. Generally, articles only change their country of
origin if the work or material added to an article in the second country constitutes a substantial
transformation, or, the article changes its name, tariff code, character or use (for instance from
wheel to car). Value added in the second country may also be an issue.

Further information: Rules of origin

[edit] Country of origin in movie and television production


The International Federation of Film Archives defines the country of origin as the country of the
principal offices of the production company or individual by whom the moving image work was
made.[12] No consistent reference or definition exists. Sources include the item itself,
accompanying material (e.g. scripts, shot lists, production records, publicity material, inventory
lists, synopses etc.), the container (if not an integral part of the piece), or other sources (standard
and special moving image reference tools).[13] In law, definitions of "country of origin" and
related terms are defined differently in different jurisdictions. Europe, Canada, and the United
States have different definitions for a variety of reasons, including tax treatment, advertising
regulations, distribution; even within the European Union, different member states have different
legislation. As a result, an individual work can have multiple countries as its "country of origin",
and may even have different countries recognized as originating places for the purpose of
different legal jurisdictions.[14] Under copyright law in the United States and other signatories of
the Berne Convention, "country of origin" is defined in an inclusive way to ensure the protection
of intellectual rights of writers and creators.

What is product evaluation?

A product is a term for any item that has been


manufactured and is useful to you. You are a
consumer when you buy it or use it. Evaluation
of the product means that its suitability and
safety for use by consumers are checked out.
All products made are required by law to be
safe to use. This is not a requirement that they
are absolutely safe - that is not possible. Nor
must they be safe at unbearable costs to
industry - that would put innovation at risk. But
they are required to be as safe as it is
reasonable to expect.
This allows designers and manufacturers to be
more creative in their product design, but it
makes it more difficult for them to ensure that
they have complied with the appropriate
regulations. Even where there is specific
legislation, manufacturers may not know if they
have done enough to show due care, which is
their main defence if a product supplied by
them is subsequently judged to be unsafe.
Evaluation will help.

 
Types of evaluation

Specialist laboratories can carry out testing of a product. They


might do this for three main reasons:

 To prove that the product complies with relevant


standards

 To investigate accidents to discover whether a product


design fault caused the accident

 To compare a product with others of a similar design

Tests can include mechanical, physical, electrical, chemical and


inflammability tests. These can evaluate product energy efficiency,
reliability and durability, that is, the product should continue to
work as intended over an appropriately long period of time.
Finally, and most importantly, these tests can help to assess safety,
but a fuller evaluation can be provided by using ergonomics
because it looks at issues from the user's point of view.

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