Research Of The Product Life Cycle In The Modern International Scope

There're three subjects being focused in the traditional theory of foreign trade and investment. They're "Why should we do the foreign trade and investment?" "Where should we do the foreign trade and investment?" and "What should we do to stimulate the foreign trade and investment? " In these terms, the theories of foreign trade and investment have analyzing the topics such as What, Why, Who, Where and How. Nevertheless, there is little discussion about When, such as the topic about the time when we should invest, re-invest or dis-invest in a foreign country, and the trend of the time. Base on both of them, we can study the strategy-making of firm and country caused by them.Raymond Vernon did this research and posed the Products Life Cycle Theory. The theory of PLC was consistent with the reality at that time. However, it has being increasingly inconsistent with the trend of FDI after the 80s in 20th century.According to the study on the three kinds of Cycle resulting from the three stage of the concept of Product, this thesis focused on the dynamicalization and systematize of the Vernon' Cycle. A Wave-Model is posed to describe the spread of innovation, manufacture, marketing among the countries and explain the foreign trade and investment.This theory is help to understand and grasp the trend of the foreign trade and investment in the time's term. Therefore, it may be a reference in making strategies of firms and nations.