Which of the theories of trade listed below most clearly illustrates the dynamic relationship between cross-border trade and investment?
A) product life cycle
B) absolute advantage
C) comparative advantage
D) new trade theory

Question

Quizplus · Accepted Answer

The product life cycle theory illustrates the dynamic relationship between cross-border trade and investment by explaining how a product's production and sales shift from one country to another over its life cycle, impacting trade patterns and investment flows as companies seek to optimize production costs and market access.

Which of the Theories of Trade Listed Below Most Clearly