Question

In: Economics

What is the relationship of product life cycle and international business?

What is the relationship of product life cycle and international business?

Solutions

Expert Solution

Product life cycle is a theorem given by raymond vernon says that during its life the product goes through many stages those being introduction, growth, maturity, saturation and decline. And during its initial stages the product stays in the region it was developed and during the subsequent stages it moves abroad to different countries with cheaper labour. This happens for many reasons a few of them being that the country where the product is developed usually has the resources for research and development and also it had the rich customer based for the product to be introduced and grow. So once the product matures and is settled it can now be manufactured with lower costs in countries with cheap labour and cheap resources and then it can be sold worldwide. That is how the product life cycle and international business are related. As when the product is in its growth period it can mature and it is ready to cater the international market and thats when we can expand it to the markets overseas.


Related Solutions

Explain international product life cycle model, and draw a figure to illustrate. And what are the...
Explain international product life cycle model, and draw a figure to illustrate. And what are the critiques to this theory?
What is the product life cycle for AAMI?
What is the product life cycle for AAMI?
International Business Cycle (BC) Synchronization: What are some of the characteristics of Business cycle that are...
International Business Cycle (BC) Synchronization: What are some of the characteristics of Business cycle that are synchronized? How do Business cycle across countries become synchronized? What are the mechanisms? Why may countries desire to have their Business cycle synchronized? What are some negative effects?
Discuss the role of smoothing  in the product life cycle of a seasonal business.
Discuss the role of smoothing  in the product life cycle of a seasonal business.
industry life cycle of cocacola? what stage in life is the product and what is the...
industry life cycle of cocacola? what stage in life is the product and what is the current company strategy.
Draw the Product Life Cycle figure of Samsonite, in which stage of the Product Life Cycle...
Draw the Product Life Cycle figure of Samsonite, in which stage of the Product Life Cycle is Samsonite currently standing? How can the company extend its life cycle?
Explain the three stages in the international product life cycle theory by providing an illustrative example...
Explain the three stages in the international product life cycle theory by providing an illustrative example (please provide the name of the company and the name of the product) to explain each stage of this theory.
- What are the four stages of the product life cycle? - What are the six...
- What are the four stages of the product life cycle? - What are the six stages in the selling process? What role does each stage play?
Based on your knowledge of the product life cycle, what stage of the PLC is this product in and what types of changes will occur to your selected product as it continues through the product life cycle?
Select a current product on the market today that you are familiar with. Based on your knowledge of the product life cycle, what stage of the PLC is this product in and what types of changes will occur to your selected product as it continues through the product life cycle? How will this affect the marketing of your selected product?
What stage of the product life cycle is amazon prime in and why?
What stage of the product life cycle is amazon prime in and why?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT