The product life cycle model helps explain why

Question

Quizplus · Accepted Answer

The product life cycle model suggests that firms may initially export their products to foreign markets, and as demand grows and production becomes standardized, they might engage in foreign direct investment (FDI) to establish production facilities in those markets. This model does not necessarily imply that firms always locate where labor is cheapest, nor does it specifically state that FDI occurs at the launch stage of a product.

The Product Life Cycle Model Helps Explain Why