Which of the following theories is illustrated in the list below? Stage 1: A new product is created to fill a domestic need and produced locally. Stage 3: The newly created product is offered to international customers. Stage 4: International customers develop expertise and offer the product at a lower cost to the original country.
A) International product life cycle theory
B) Porter's cluster theory
C) Sheffi's logistics cluster theory
D) Theory of Comparative Advantage

Question

Quizplus · Accepted Answer

The International product life cycle theory explains that a new product is first developed and produced domestically, then exported to other countries, and eventually those countries develop expertise and can produce the product at a lower cost than the original country. This theory is illustrated in the list of stages given in the question.

Which of the Following Theories Is Illustrated in the List