The answer of the following question is given below in a detailed manner as follows :

In country like US ie a huge and country having alot of customers there are needs and wants of the people. After identifying needs and wants, the products are introduced in solution form. The final product goes through three main stages.

The first stage is the new product stage when the product is produced and consumed within the country.

The second stage is the maturation stage of the product and once the general standards and characteristics have emerged, the product is produced in bulk. At this stage, production is shifted to developed countries with high income levels. So The last stage is the stage of the standardized product and the characteristics and the production process are known to all. At this stage the productions are transferred to developing countries.

So the Products that enter the domestic market are called imported products. On the other hand, products that are sold to a foreign country are called exported product.

The increased production of the pirated and counterfeit product indicates that the gap between the initial "U" stage in the country and its production in a foreign country has narrowed. The time it takes for the second stage of the product cycle (that is, the product maturation stage) is occurring more quickly. By making production profitable, companies from country "U" move production facilities to developed countries, but today it is not owned by the company itself. So In this situation, the companies of country "U" cannot adequately supervise the production process. This loop diminishes the profits of the companies in country 'U' and does not influence the research and development of new products. Therefore, the life cycle of a product is very fast today, indicating that in the future the life cycle of the product would be even shorter. This slows down research and development of new products and people in the world have to wait for a new product. On the other hand, companies have to bear the loss, since they do not receive any royalty for the product that could have helped the economy.