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Preferred term

product life cycle hypothesis  

Definition

  • Attempting to explain patterns of international trade, Raymond Vernon observed a circular phenomenon in the composition of trade between countries in the world market. Advanced countries, which have the ability and competence to innovate as well as high-income levels and mass consumption, become initial exporters of goods. [Source: Encyclopedia of Business in Today's World; Product Life Cycle Hypothesis]

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https://concepts.sagepub.com/social-science/concept/product_life_cycle_hypothesis

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