Abstract
The author presents a cyclical model to conceptualize the impact that a single manufactured commodity has on the lending country's balance of payments as the product traverses the course of its life-cycle. The model depicts the relationship that exist among the different international accounts at different stages of the product cycle. Some macro-economic implications of this micro-economic model are then explored.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Additional information
*Frank S. Wert is Assistant Professor of Economics at Central State University, Edmond, Oklahoma. He earned his Ph.D. in International Economics and Economic Development from Colorado State University.
The author wishes to acknowledge the comments and criticism on earlier drafts of this paper by Professors T. Ozawa, C. Wheeler, K. Gilbreath, and an anonymous referee of this Journal.
Rights and permissions
About this article
Cite this article
Wert, F. A Product Cycle Model of the Balance of Payments Impact of U.S. Based Multinationalism. J Int Bus Stud 4, 51–64 (1973). https://doi.org/10.1057/palgrave.jibs.8490760
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.jibs.8490760