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vided into four stages: new product stage, growth product stage, maturity product stage and obsolescence product stage (Baier and Bergstrand, 2002). For example, many scholars use this theory to explain the international trade between developing and developed countries, since the developed countries stay in a more advanced period in the product life cycle. This theory can reflect the process through which the industries transfer from developed countries to developing countries. On the basis of this theory, less competitive industries of the developed countries should be transferred to developing countries where these industries could be more competitive. This theory is partially oriented from the Technological Gap theory. The life cycle of product reflects different process and time in occurrence with different levels of technological development in different countries. In this process, there exists time lag which can be shown as the technological gap among countries which could reflect the differences in the competitive positions on the basis of the same type of products in different markets (Castells, 1996). It is the technological gap that decides the changes in the international investment and national and international free trade. The theories explain the occurrence of national and international free trade in a dynamic way and discuss that the path of development for one country's industries may follow the mode of 'Import-Import substitution-Export' which can illustrate the image of the transferring process of industry comparative advantages from one country to the other. While these two theories provide different explanations on the occurrence of foreign investment and international free trade. The International Life Cycle theory accounts for the national and international free trade and investment in different stages in the product life cycle which are oriented from the technological gap between nations (Doz & Hamel, 1998).
 
Some researchers also indicate that special elements such as restrictions, conditions and trade regime in one country may to a large degree affect the effects in relation to national and international free trade. For example, before the entering WTO, Chinese government quite often use tariff quotas and differentiated criteria to control its importing certain products, some of the most needed products will be favored and given priority, while others will not be treated equally. Kokko, et al. (2001), on the basis of a cross-sectional and firm-level dataset, did the research on the factors which facilitate national and international free trade activities conducted by indigenous companies in manufacturing sector of Uruguay in 1998. A simple measurement of the presence of MNEs in manufacturing sector of Uruguay was used. The presence of MNEs in import-substituting manufacturing sectors has been distinguished from MNEs in export-orientated manufacturing sectors. It is only in export-oriented MNEs that the spillover effects have been found. The investigation demonstrates that the trade regime in manufacturing sector of Uruguay may largely influence the potential of MNEs in generating spillovers from export activities.

Rivera-Baitsand Romer (1991)believe that international free tradeis playing an important role inpromoting the technological diffusioncreation as well as transfer in manufacturing sector. They also believe that if the international exploitation of growing returns to 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。