Which one of the following statements pertaining to Vernon's "product cycle theory" for Explaining U.S. trade is INCORRECT?

Question

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Vernon's product cycle theory suggests that in the "new product" stage, a product is exclusively produced and sold in the home country (often the U.S. in this context) due to its novelty and the high costs associated with its production. As the product matures, production processes become standardized and less costly, allowing for production to shift to other countries where production costs are lower. This shift can lead to the U.S. importing the good as production moves abroad, but it does not imply that throughout the "maturing product" stage, the good is exclusively being produced abroad as stated in option B. This stage may involve a mix of domestic production and imports as firms optimize their production locations.

Which One of the Following Statements Pertaining to Vernon's "Product