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Thank You!
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➢trade and investment are intertwined ➢Capital-intensive
Stage III: The Standardized Product
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III Stages of the Product Cycle
Stage I: The New Product
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II Brief Introduction
➢ Products have a limited market life
➢ PLC four stages (Marketing) ➢ location of production shifts
➢ dynamic development of comparative
Advantage Theory based on Technological Gap Theory.
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III Stages of the Product Cycle
Stage I: The New Product ----Innovation
➢highly skilled labor; capital for R&D; location ➢non-standardized; high cost; monopolize ➢Technology-intensive
Therefore, different types of countries can be in different stages of comparative advantage. ➢ technology-intensive ➢ capital-intensive