The document summarizes Raymond Vernon's international trade product cycle model from 1966. The model outlines that a new product goes through three phases: 1) It is initially produced and sold solely in the home market at a high price with local competition. 2) Offshore production and exporting to other countries occurs to reduce costs as competition increases. 3) The product becomes standardized and ubiquitous with competition, and is eventually imported back to the home country at a low price. The model helped explain how industries migrated across borders over time, though it is difficult to determine the phase and does not consider the consumer side of the product life cycle.