The country of origin literature suggests that the image of a nation can have a powerful effect on how consumers evaluate its products (Han and Terpstra, 1988) as well as the success of its products in foreign markets (Dichter, 1962).There is no consensus to the definition of the country of origin effect (Sauer et al., 1991) though it is generally understood as the impact of a people’s perception about a country on their evaluation of the country’s outputs. Bannister and Saunders (1978: 562) defined the country of origin effect as ‘generalized images created by variables such as representative products,economic and political maturity, historical events and relationships, traditions, industri- alization and the degree of technological virtuosity, which will have effects upon con- sumer attitudes additional to those emanating from the significant elements of the products.’ Bannister and Saunders omitted some important elements, such as many social and cultural factors, but their definition indicated clearly that the country of origin effect involves more than the physical output itself.