Question

Under the product life cycle (PLC) theory, the global spread of technology:

	1.	is gradual, from the innovating countries to the follower countries
	2.	means that the innovating countries eventually lose the technology they develop
	3.	will result in poor countries rapidly catching up to rich countries
	4.	is almost instantaneous
	5.	is virtually nonexistent

Answer 1

ans =option 5 (is essentially non-existent)

According to TLC firms should be careful while managing their patents during the initial stage (R&D) of the TLC. If firms lose their core competence thru the leak of confidential elements, then this may lessen the lifespan of the technology. If firms can safeguard their technology, they can construct certain barriers for sustaining their competitive advantage. (1) The R&D stage - whatever the technology’s potential, in this phase risks are especially high and firms can either succeed / fail. (2) The ascent stage – in this stage the technology has proven its worth in the market whilst is still new & tough to find knowledgeable personnel to carry out / sustain it. (3) The maturity stage- the technology is consented by everybody with its particular solution & info. (4) The decline- the technology’s value declines and it is replaced by a new state-of -the – art one.