Introduction Once a company has created a new product,theoretically it can manufacture anywhere in the world. In practice,however, the early- production stage,called the introduแtory stage, generally occurs in a domestic location so the company can obtain rapid market feedback and save on transport costs,since most sales are domestic. Any export sales are mainly to other developed countries because of more affluent customers there. Production is apt to be more labor-intensive than in later stages because more labor. saving machinery may be introduced only when sales begin to expand rapidly and the product becomes highly standardized. Although production is in developed countries with high labor rates, their education and skills usually make this labor efficient in nonstandardized production. Even if production costs are high
because companies can often pass costs on to consumers who are unwilling to wait for possible price reductions later.