According to Raymond Vernon (1966),

Question

Quizplus · Accepted Answer

These are all statements made by Raymond Vernon in his theory of the product life cycle and its impact on foreign direct investment by firms. Vernon argued that U.S. firms would initially introduce new products in the domestic market, where demand was high and prices could be set relatively high. As the product matured and the market became more saturated, firms would seek new markets overseas through foreign direct investment. This theory had significant implications for understanding patterns of international trade and investment.