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TheProductLife CycleTheory Theproductlife cyclemodeloftrade PLC PCT ProductCycleTheory Why Consider Themodel PLC claimsthatmanyproductsgothroughatradecycle duringwhichtheUnitedStatesisinitiallyanexporter thenlosesitsexportmarketsandmayfinallybecomeanimporteroftheproduct LouisT Wells JR 2 OUTLINE BackgroundBriefIntroductionStagesoftheProductCycleTradeImplicationsofProductCycle 3 IBackground FactorEndowmentTheoryassumedthat sametechnologyinproduction productionfunction 生产函数 kindofproducts eg someadvancedcountries shareverysimilargeneraleconomicconditions Butinreality thetechnologyeverycountryadopteddoesexistgap andthisgapisdynamicallychanging Toexplainthecausesofinternationaltradeandtradepatternsbasedonthechangesintechnology in1961 theU S economistM V PosnerproposedtheTechnologicalGapTheoryandgaveanexplanation 4 TechnologicalGapTheory 技术差距论 Trademaybecausedbytechnicalchangesanddevelopments Particulartechnicalchangesoriginateinonecountry comparativecostdifferences 比较成本差异 mayinducetradeinparticulargoodsduringthelapseoftimetakenfortherestoftheworldtoimitateonecountry sinnovation InternationalTradeandTechnicalChangeAdemandlag 需求时滞 Aimitationlag 模仿时滞 Areactionlag 反应时滞 Amasterylag 掌握时滞 5 IBackground TechnologicalGapModel 6 t0 创新国生产和出口 模仿国生产和出口 T 时间 创新国生产 创新国进口 模仿国出口 创新国出口 模仿国进口 t1 t2 t3 需求时滞 反应时滞 掌握时滞 模仿时滞 模仿国生产 国际贸易的可能 However why taketheleadingposition howlong imitationgap BycombiningPLCinmarketingwithinternationaltradetheory Technologicaldevelopmentofanewproductgenerallyhasthreestages newproductstage thestageofmaturityandstandardization 7 Then 8 IIBriefIntroduction Worldtrade Manufacturedproducts Aproduct slife Technologytransfer FDI ForeignDirectInvestment Import Exporttrade Advancedcountries RaymondVernon ProductshavealimitedmarketlifePLCfourstages Marketing locationofproductionshiftsdynamicdevelopmentofcomparativeAdvantageTheorybasedonTechnologicalGapTheory 9 IIBriefIntroduction 10 IIIStagesoftheProductCycle StageI TheNewProduct Innovationhighlyskilledlabor capitalforRmonopolizeTechnology intensiveNointernationaltradehappens StageII TheMaturingProduct StageIII TheStandardizedProduct 11 IIIStagesoftheProductCycle StageI TheNewProduct StageII TheMaturingProductIncreasinglystandardizedflexibilityindesign manufacturingdeclines competitorsdevelop pricesandprofitmargins LosesmarketorinvestsabroadtradeandinvestmentareintertwinedCapital intensive StageIII TheStandardizedProduct 12 IIIStagesoftheProductCycle StageI TheNewProduct StageII TheMaturingProduct StageIII TheStandardizedProductCompletelystandardized Technologyaccountsless LDC Profitmarginsarethin andcompetitionisfierce Labor intensive unskilled 13 PLCModel NewProductMaturingProductStandardizedProductStagesofProductDevelopment More ThePLChypothesisinanewinternationalenvironmenthasbeenchangingfortworeasons geographicalreach network sspread overseassubsidiaries 子公司 nationalmarketsoftheadvancedindustrializedcountriesdifferencesreduce RaymondVernon 14 A TheproductisinitiallydesignedandmanufacturedintheU S B Astheproductmovestothematuringproductstage productionexpandstootheradvancedcountries C Thestandardizedproductionstageseesthecomparativeadvantageofproductionandexportshifttolessdevelopedcountries 15 IVTradeImplicationsoftheProductCycle 16 PLCModel ManufacturedGoods T1 T3 T4 T5 Astheproductlifecyclestagechanges thedeterminantsaffectingthecomparativeadvantageischanging Therefore differenttypesofcountriescan

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