product life cycle (PLC) theory of trade states the product location of certain manufactured products shifts as they go through their life cycle The cycle consist of four stages introduction, growth maturity, and decline 'Tabie 52 highlights these stage Changes over the Cycle Companies develop new products primarily because the observe nearby needs for them: thus a US. company is most apt cteate a new produd for the U.S. market, a French company for the French market, and 50 an At the same time almost all new technology that results in new products and production methods originat in developed countries, which have most of the resouroes to develop new products and of the income to buy them.