Page 174 - International Marketing

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176 International Marketing BRILLIANT'S

 Company sells that product in the domestic market for certain
duration. After that it will export that product to other advanced
countries where sufficient demand about the product has been
created. So, net exports will always be:
 Net Exports = Production-Consumption
 Motorola has first sold their cell phones in the American market
after that they have started exporting to other advanced countries
like Japan, EU.
 After sometime when this technical -know-how of the cell phones
has reached to the other advanced countries like Japan and less
developed countries like South Korea, the exports of the USA
started to diminish.
 At the end, the innovator country ,USA become importer of that
technology because:
 They utilize their resources for innovation of some new tech-
nology.
 Less developed nations are more cost efficient in producing
that technology.
 So innovating countries starts with the innovation, then local pro-
duction and consumption then exports then diminishing exports
and finally it ends up by becoming importer of that technology.
IPLC of Innovating Firm’s Country
All the stages of the innovating country are summarized in the follow-
ing figure:
150
Unit Produced 120

90

60

30

0

Fig.: IPLC (International Product Life Cycle)