<![CDATA[Globalisation causes complexity in the determination of the origin of goods. The basic concept of the rule of origin is to identify the "nationality" of goods. In this regard, the "nationality" of goods imposes the legal consequence of trade policy instruments that are applied to the goods. In order to determine such "nationality',) there are legal or administrative requirements that must be fulfilled by the traders, known as origin criteria. There are various types of preferential rules of origin depending on the agreement of the contracting parties under the Regional Integration Agreements, or RIAs. The rules of origin can be different from country to country since here is no binding agreement or international standard governing preferential rules of origin. The rules of origin govern cross border goods movement in international trade relations. The rules of origin are not applied to goods or products that are manufactured and sold inside the country itself The rules of origin influence investment and production decisions. The production decision includes the "production factor" and "profit maximising firms': One of the production factors is the source materials of the goods. Production efficiency is influenced by the use of good quality materials with the lowest price. This factor triggers the establishment of the free trade agreement or preferential trade agreement between potential trading partners.]]>
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