Country of origin effects or Racism?

The 'country of origin effects' still seem to linger on, at least when it comes to Indian products and services. A discussion in my class today centered around apparel brands in India. The point of debate was whether brands from the Aditya Birla Nuvo stable such as Loius Philippe, Allen Solly, Van Heusen and Peter England would benefit from being identified as brands from the Aditya Birla Group. Or would it make better sense to not have this association revealed, as then, consumers may perceive them to be MNC brands resulting in 'premium associations' that would justify the higher price tag?

There seems to be a similar scenario when it comes to the Taj Group. The Taj Group of Hotels' interest in a stake in the Orient Express Luxury hotel chain has been spurned. ET reports that 'The luxury hotel chain has cited that any association of its brands and properties with the 'predominantly domestic' Indian hotel chain would result in an erosion of the brand and business value of its 'global portfolio of luxury hotels and unique travel experiences.'

Paul M White, president and CEO of Orient Express Hotels has stated that, 'We believe any association of our luxury brands and properties with your (Taj Group) brands and properties would result in a reduction in the value of our brands and of our business.'

Now, is there any grain of truth in whats been stated or should we start bellowing about 'racist biases'? Remember the Mittal-Arcelor tiff?