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The product life-cycle theory is an accurate explanation of international trade patterns. The photocopier is a good example; Xerox was the first to develop and sell the product in the early 1960s in the United States. Xerox exported the photocopiers from the United States to Japan and the advanced countries of Western Europe. As the demand for the photocopiers grew in those countries, Xerox entered into joint ventures to set up production in Japan (Fuji-Xerox) and Great Britain. When Xerox's patents expired, other foreign competitors began to enter the market. U.S. users began to purchase the photocopiers from Japanese companies because they were less expensive; this created a decline in exports from the United States...
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