Tijuana,Mexico is across the border from San Diego,California.It has become a world-leading producer and exporter of television sets and computer monitors,which it assembles in modern factories owned by multinational consumer electronics firms such as Sony.Initially,these electronics were produced in the industrialized countries of their parent companies,and after several years,the production moved to Tijuana.This is an example of
A)the product cycle.
B)intraindustry trade.
C)the specific factors model.
D)the magnification effect.

Question

Quizplus · Accepted Answer

The production of electronics initially took place in the industrialized countries of their parent companies and then moved to Tijuana after several years. This indicates that the production has gone through the various stages of the product cycle, which includes the initial development and production in the country of origin, followed by a period of maturation and saturation, and then shifting production to lower-cost countries.

Tijuana,Mexico Is Across the Border from San Diego,California