Explain the three stages in the international product life cycle theory
What will be an ideal response?
Stage 1. New Product Stage. In stage 1, a firm develops and introduces an innovative product. Because of the need for fast feedback, the product may only be produced in the country where the research and development occurred.
Stage 2. Maturing Product Stage. In stage 2, demand for the product expands dramatically as consumers recognize its value. The innovating firm may build new factories to expand its capacity and satisfy domestic and foreign demand.
Stage 3. Standardized Product Stage. In stage 3, the market for the product stabilizes. The product becomes more of a commodity and the firm shifts production to countries with lower labor costs. As a result, the innovating firm's home country becomes an importer of the product, rather than an exporter.
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A retailer would not conduct an audit unless it would involve the lowest incremental costs possible. The retailer should consider using a(n) _____
a. outside auditor b. company specialist c. company department manager d. consultant
Whereas marketing and financial careers have been transformed by the growth in information systems, thus far the job of management has remained relatively unaffected
Indicate whether the statement is true or false