According to the product life-cycle theory, the high cost of U.S. labor gave U.S. firms an incentive to
A) lower costs of services to offset a fall in demand.
B) develop cost-saving process innovations.
C) invite foreign direct investment in domestic industries.
D) embrace and promote open market capitalism.
E) import new consumer products and export agricultural products.

Question

Quizplus · Accepted Answer

The high cost of U.S. labor incentivized firms to innovate in processes to reduce costs and maintain competitiveness.

According to the Product Life-Cycle Theory, the High Cost of U.S