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The Product Life Cycle Theory is an economic theory that was developed by Raymond Vernon in response to the failure of the Heckscher-Ohlin model to explain the observed pattern of international trade.

The theory suggests that early in a product's life-cycle all the parts and labor associated with that product come from the area where it was invented.

After the product becomes adopted and used in the world markets, production gradually moves Barrie pussy girls from the point of origin. In some situations, the product becomes an Richmond highlands massage that is imported by its original country of invention.

The model applies to labor-saving and capital-using products that at least at first cater to high-income groups. In the new product stage, the product Model flirt Vernon produced and consumed in the US; no export trade occurs. In the maturing product stage, mass-production techniques are developed and foreign demand in developed countries expands; the US now exports the product to other developed countries.

In the standardized product stage, production moves to developing countries, which then export the product to developed countries. The model demonstrates dynamic comparative advantage.

Product life-cycle theory - Wikipedia

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Product life-cycle theory

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