China and Europe textile trade dispute with "the product life cycle theory"
According to pick the Vernon product life cycle theory, "product" also add recession has completed the new industrial structure adjustment, the new product creates new market demand and the remaining sum of the product must be higher than market demand for products ", "in the market demand, a mixed economy today, five fingers shoes the industrial transfer must consider the factors.
Keywords textile trade dispute sunset industry product life cycle

On vibram shoes June 11, 2005, the eu will eventually solve textile trade dispute over recent agreement, to avoid the bilateral trade friction further upgrade. But the beauty industry not buy central mode of "sunset industries, U.S. representative organizations" American textile manufacturers association, in the two countries to solve textile trade, they will continue until the issue to the government more Chinese imports. As of August 31, due to late in textile dispute and position on the vibram five fingers outside, still have great expectations by remote China fourth round Beijing ended without consultation.
As is known to all, textile industry is a labour-intensive, compared with the developed countries is "the sunset industry", therefore, we couldn't help thinking of the product life cycle Vernon theory.
The mid 1960s, Harvard University professor in America Vernon phenomenon of direct foreign investment enterprises as the research object, puts forward the direct five fingers investment of multinational company product life cycle theory. Vernon's product life cycle theory to the product life cycle in each phase of the production of international industrial transfer changes to explain the phenomenon. The theory is that, the enterprise with foreign investment activity, the enterprise product cycles in foreign direct investment is periodic motion products, production condition and competition due to changes in the conditions of making decision. Vernon one product life cycle divided for innovation, mature and decline in three stages. In the first stage of the product life cycle, technology innovation, because the product demand elasticity, cost less to enterprise manufacturing location vibram choice between the difference, therefore, the product in domestic, general foreign market demand on exports meet basic. In the second stage of the product life cycle, the product technology at home and abroad, and gradually mature product demand expand product price elasticity to reduce cost, increase the demand is very urgent. At the same time, the product is stable, generic type, technical advantages.