 Profit margins decrease, but the business remains attractive because volume is high and costs, such as for development and promotion, are also lower.In addition, foreign demand for the product grows, but it is associated particularly with other developed countries, since the product is catering to high-income demands.For instance, in the case of the newly invented product, this rise in foreign demand (assisted by economies of scale) leads to a trade pattern whereby the United States exports the product to other high-income countries.