Abstract

Insufficient attention has been paid to the importance of quality as a factor in determining the state of the economy, yet improvements in product quality can be a catalyst in the betterment of national economies and the lives of people. Five economic areas in which quality plays a significant role are: Competitive advantage in exporting, national trade deficits, economic growth, productivity and customer satisfaction, and standardization. High quality can be the basis for achieving a competitive advantage in exporting. Improvements in the quality of products and services could be used instead of exchange rate depreciation to achieve a positive trade balance. Waste is a major deterrent to growth in both developing countries and more advanced countries. When quality and quantity of goods vary over time, a measure of economic growth should reflect these changes. Customer satisfaction is affected both by quality and quantity, thus a customer satisfaction index would reflect whether the economy is adapting to change in customer tastes. Standardization of product requirements and test methods would allow countries to lower trade barriers, opening a larger market. A sidebar article describes the American Customer Satisfaction Index model.