Which theory emphasizes the role of technology in determining the trade patterns of manufactured products?
A) factor-endowment theory
B) theory of comparative advantage
C) product life cycle theory
D) theory of overlapping demands

Question

Quizplus · Accepted Answer

The theory of product life cycle emphasizes the role of technology in determining the trade patterns of manufactured products. This theory suggests that a product goes through different stages of innovation and production, and as it becomes more standardized and widely adopted, production shifts from the innovating country to other countries where production costs are lower. This theory is particularly relevant for industries that rely heavily on technology and innovation, such as the technology industry.

Which Theory Emphasizes the Role of Technology in Determining the Trade