The four countries being focused in this paper, namely USA, China, Saudi Arabia, and the Democratic Republic of Congo, are in a different stage in the lifecycle. Congo is in the introduction stage. This country is in the process of developing its various industries. Few firms are operating in these industries and, even if unique products are being introduced, the rate is not substantial (Wang, 2001). The rate of competition is not extended and as such, there is a possibility of a new product doing exemplarily well. Nevertheless, the products from these new industries are making entry into foreign markets. Saudi Arabia and China are in the growth stage. The industries in these two countries are already established.
Nevertheless, there is still room for further sectors. Further, at this stage, Saudi Arabia, and China have to maintain immense levels of capital to sustain the existing industries. Apart from this, residing in the growth stage, these two countries produce a diverse range of products, most of which are competing in nature. Additionally, the products from these two countries have already been embraced in other nations. The US can be acknowledged as residing in the maturity lifecycle stage. Just as Wang (2001) revealed, the US’ industry life cycle has become noticeably flatter, a thing that signifies a slowing growth.
Rather than introducing new industries, in correspondence with the maturity stage, the US is known to expand them. Nevertheless, new products are still being produced. Regarding its trade with other international countries, the US has already established strong ties with the external world (Wang, 2001). What this means is that its products trade freely in other nations across the world. The US also accepts other products without extended restrictions. The level of competition in the US, at the maturity stage, is expansive and cannot be compared with the case of other countries.
- Wang, Z. (2001). Learning, Diffusion, and Industry Life Cycle. Federal Reserve Bank of Kansas City. Retrieved fromwww.kansascityfed.org/PUBLICAT/PSR/RWP/NBER-WangPaper.pdf