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international markets by reducing information costs. This is the case for both exporters and importers.
For importers, standards reduce the uncertainty about product quality. For exporters, standards
lower production costs, facilitate the exchange of information, and reduce the imitation costs.
In fact, this positive effect of standards is present for Chinese and Indian firms in Africa.
Unlike developed countries, developing countries often lack effective and efficient consumer organizations as well as governmental product-approval and surveillance mechanisms. In such cases, quality and safety standards have an even more important role as instruments of self-regulation. Box 5.4 illustrates how Chinese firms utilize standards as a tool to communicate the quality of their products and services in African countries.
BOX 5.4
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