The international product life cycle (IPLC) theory explains how a product that is an export eventually becomes an import. At first sales are strong when a U.S. company sells to both U.S. and foreign consumers. Then foreign producers make the item at a lower cost, and U.S. exports decline. Finally foreign competitors undercut U.S. prices, and consumers buy the less expensive imported product. 

INSTRUCTIONS

Use a product such as a DVD player to illustrate the IPLC.