Which trade theory suggests that a newly produced good, once exported, could ultimately end up being imported as the technology is transferred to foreign nations?
A) factor-endowment theory
B) product life cycle theory
C) theory of overlapping demands
D) specific-factors theory

Question

Quizplus · Accepted Answer

The product life cycle theory suggests that a newly produced good, once exported, could ultimately end up being imported as the technology is transferred to foreign nations. As the product becomes mature, production may shift to lower-cost countries, leading to the eventual importing of the previously exported good. Factors such as innovation, economic development, and global competition can also influence the product life cycle.

Which Trade Theory Suggests That a Newly Produced Good, Once