In a world of increasing specialization and division of labour, the designation of one country of origin to a product is becoming increasingly out of touch with the reality and is getting more and more costly in terms of the investment and trade diversion effect country of origin rules (COR) cause. This paper proposes an extension of the Lloyd (1993) proposal and formalizes it into a Multiple Country of Origin Rule and recommends it on the basis of the more accurate information content it provides and the greater economic efficiency it results.
Ho, L. S. (1997). Country of origin rules : its origin, nature and directions for reform (CAPS Working Paper Series No.66). Retrieved from Lingnan University website: http://commons.ln.edu.hk/capswp/37