US Japan European companies are usually the first to design

U.S, Japan, European companies are usually the first to design, invent and innovate products. a) What happens toward the end of these new products international life cycles? b) what must happen to the economies of these countries? c) What actually happens to these countries?

Solution

US, Japan and European countries are developed nations. They have skilled labors, manpower, resources, technologies to innovate product, etc.

a) This nations keeps developing their product. They ensure that their markets are not stagnant and product remains into maturity period. For example Playstation is the console gaming product which has been dveloped over the years. This products also satisfy the expectation of end consumer. Iphone of US origin has been one of the largest selling mobile phones which is still in demand due to latest technology in product.

b) Their economies continous to grow as their product gives value to the customer. They do not compromise with quality and this is the main factor which drives success to this nations.

c) This country meets the demand of the consumer and continous to grow and expand their product internationally. They build more research and development centers to compete in the market. Due to this there will be a growth of GDP of this nations.