The International Product Cycle
The product cycle model was applied to international context by Raymond Vernon of the Harvard Business School in 1966.. In Vernon's model the introduction and establishment a new product is provided in the market follows three principal phases: high tech, growth and internationalization, and maturity. These form the basis of a three-phase development for multinational enterprises.
In this stage, the innovating firm produces and markets solely in the home market. The products depend on the application of advances in science and engineering to product development. The products generally command a high price relatively to direct costs.