According to Vernon, what eliminates the need for pioneering U.S. firms to look for low-cost production sites in other countries?
A) The uncertainties and risks inherent in introducing new products are very low.
B) The demand for most new products tends to be based mainly on price.
C) U.S. labor costs are relatively low compared to global standards.
D) Firms can charge relatively high prices for new products.
E) The production of innovative products in other advanced countries limits the potential for exports from the United States.

Question

Quizplus · Accepted Answer

Firms can charge relatively high prices for new products, which allows them to cover higher domestic production costs without needing to seek low-cost production sites abroad.

According to Vernon, What Eliminates the Need for Pioneering U