Which of the following theories suggests that firms seek to penetrate new markets over time?
A) theory of comparative advantage
B) imperfect markets theory
C) product cycle theory
D) None of these are correct.

Question

Quizplus · Accepted Answer

The product cycle theory suggests that firms seek to penetrate new markets over time. This theory proposes that a product goes through four stages: introduction, growth, maturity, and decline. As a product reaches maturity in its domestic market, firms seek to enter new markets to continue growth, leading to internationalization.

Which of the Following Theories Suggests That Firms Seek to Penetrate