International Product Life Cycle Essay Example for Free

pla mesh topologyary Product Life Cycle EssayThe international product life beat (IPLC) theory, true and support by economists to explain trade in a context of comparative advantage, describes the diffusion process of an figure across national boundaries. The life cycle begins when a developed country, having a new product to play consumer needs, wants to exploit its technological breakthrough by selling abroad.Other ripe nations soon start up their own production facilities, and before long LDCs do the same Efficiency/comparative advantage shifts from developed countries to developing nations. Finally, advanced nations, no longer cost-effective, import products from their former customers. The moral of this process could be that an advanced nation becomes a victim of its own creation. IPLC theory has the potential to be a valuable example for marketing planning on a multinational basis.In this section the IPLC is examined from the marketing perspective, and marketing im plications for two innovators and initiators are discussed below. Stages and Characteristics There are five distinct stages (Stage 0 through Stage 4) in the IPLC. prorogue below shows the major characteristics of the IPLC stages, with the United States as the developer of the presentation in question. Exhibit shows three life-cycle curves for the same innovation one for the initiating country (i. . , the United States in this instance), one for other advanced nations, and one for LDCs. For each curve, net export results when the curve is above the horizontal line if under the horizontal line, net import results for that particular(prenominal) country. As the innovation moves through time, directions of all three curves change. Time is relative, because the time needed for a cycle to be completed varies from one kind of product to another.