SUCKING COCK?

of the lower production and distribution costs. As a result more countries can be served either from the original home base, or from the new location depending on the cost involved. The final stage in the product life cycle is effectively the decline of the product. As a result of greater number of competitors producing similar products, the company is forced to find the cheapest form of production with the lowest distribution costs, thus resulting in production being shifted from the domestic market to a foreign country (that supports cheaper production) the product is then shipped back to the home company from abroad.

Vernon’s model is a clear example of a firm following a step-by-step process in order to achieve internationalization. Vernon believed that ‘the firm moves through stages of innovation, to standardisation, and maturity according to the development forces of supply and demand for its product (Tayeb, 2000). However, as Dicken states, ‘firms have b...