Raymond Vernon's view of foreign direct investment is that firms undertake FDI at particular stages in the life cycle of a product they have pioneered.

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Raymond Vernon's theory of product life cycle states that firms undertake foreign direct investment at specific stages of a product's life cycle, which begins with innovation and subsequent growth in the domestic market, followed by maturity in the domestic market, and eventually decline. As a result, firms seek out new markets through FDI in order to continue sales growth and production.

Raymond Vernon's View of Foreign Direct Investment Is That Firms