The Product Cycle Hypothesis in a New International Environment

  title={The Product Cycle Hypothesis in a New International Environment},
  author={Raymond Vernon},
  journal={Oxford Bulletin of Economics and Statistics},
  • R. Vernon
  • Published 1 May 2009
  • Economics
  • Oxford Bulletin of Economics and Statistics
The last decade has produced a flowering of hypotheses that purport to explain the international trade and direct investment activities of firms in terms of the socalled product cycle. My purpxjse in this paper is to suggest that the power of such hj'potheses has been changing. Two reasons account for that change: one, an increase in the geographical reach of many of the enterprises that are involved in the introduction of new products, a consequence of their having established many overseas… 

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