Raymond Vernon proposed the product life cycle in the mid-1960s.Vernon argued that two factors gave U.S.firms a strong incentive to develop new consumer products.These two factors were _____ and _____.

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Vernon's theory was based on the observation that for most of the 20^th century a very large proportion of the world's new products had been developed by U.S.firms and sold first in the U.S.market.To explain this,Vernon argued that the wealth and size of the U.S.market gave U.S.firms a strong incentive to develop new consumer products.

Raymond Vernon Proposed the Product Life Cycle in the Mid-1960s