Many consumers assume that products labeled “Made in USA” are almost entirely manufactured domestically, but supply chains tell a more complex story.

Take a car, for example. While the engine, transmission and body of the car might be built and assembled in the U.S., the electronics might be manufactured in Japan, the steering system in Mexico, and the raw materials used might be from Canada. Despite this global input, the vehicle can still qualify for a “Made in USA” label under current Federal Trade Commission, or FTC, guidelines if the final assembly is domestic and a substantial portion of the manufacturing costs are incurred in the U.S.

In other words, “Made in America” branding may not fully align with consumer expectations about domestic production.

A new study from advertising and public relations researchers at Michigan State University’s College of Communication Arts and Sciences digs deeper into consumer attitudes, perceptions and behaviors of “Made in USA” claims. Published in the Journal of Law, Business and Ethics, it is only the second peer-reviewed study to explore what “Made in USA” claims mean to consumers.

“Claims that particular brands are made in the United States are often believed by advertisers to be worth promoting,” said Jef I. Richards, professor and lead author of the study. “Laws have been crafted to restrict the use of these advertising/marketing claims. Unfortunately, laws can be formulated without a thorough understanding of consumer perceptions.”