2Internationalization Theories
2.1The International Product Life-Cycle Theory
2.1.1Market entry according to the product life-cycle phase
The international product life-cycle theory developed by Vernon was introduced in 1966 (Vernon, 1966). Based on panel research of enterprises from the United States of America, Vernon’s product life-cycle explanations further developed the existing trade theories introduced by Heckscher-Ohlin and Leontief (Vernon, 1972: 4–6). Vernon assumed that the flow of information across national borders would be restricted and that products undergo predictable changes that have an impact on the firm’s internationalization strategies. The product life-cycle model was developed on these assumptions: the production process ...
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