Answer:
The answer is: Vernon's Product Life Cycle theory
Explanation:
Product Life Cycle theory was developed to describe the observed pattern of the international trade. This theory was given by Raymond Vernon and the Product Life Cycle has four stages:
1. The introduction stage: Introducing or launching new product in the local market.
2. The growth stage: Strong demand of products and increase in the sales, which increases the profits. The product are exported to other high-income developed countries.
3. The maturity stage: The production is moved to the developed countries.
4. The decline stage: The production of the products begins moves in the low-wage developing countries.
