If a product is from a country which is perceived to make quality products, people may make the assumption that it is also of high quality. It is known as the country-of-origin effect.
The country-of-origin effect (COE) is a psychological effect which
occurs when customers are unfamiliar with a product (e.g., product
quality) and the image of the product's country of origin has a "halo
effect" on the customers' evaluation of the product.
Some companies make great effort to make their products country of origin known, going as far as to make it clear in their branding. Swiss companies are especially known for this:
The country of origin can also have an opposite effect. Products from countries that aren't known for producing high quality goods can sometimes be mistakenly assumed to be an inferior product. This is known as the provenance paradox.
A product’s country of origin establishes its authenticity. Consumers
associate certain geographies with the best products: French wine,
Italian sports cars, Swiss watches. Competing products from other
countries—especially developing markets—are perceived as less
authentic. Even when their quality is on par with that of established
players, the developing-market firms can’t command a fair price. The
lower price, in turn, reinforces the idea that the offering isn’t as
good and that the region doesn’t make premium products.