According to product life cycle theory, which of the following explains a situation when a country will eventually import the product which is initially developed and exported by the country itself?

Question

Quizplus · Accepted Answer

The product cycle model suggests the changes in international location of production. When a product is more mature or standardised, the production will move to countries that have lower production costs. The country that initially creates the product would eventually import the product back if the wage cost outside the country were very low and offset the cost of transport the product back to the country.

According to Product Life Cycle Theory, Which of the Following