The basic idea that certain countries specialize in producing new products based on technological innovation while other countries specialize in producing already well-established products is called:
A) economies of scale.
B) primary and secondary markets.
C) product cycle.
D) production cost theory.
E) diseconomies of scale.

Question

Quizplus · Accepted Answer

The product cycle theory suggests that countries will specialize in the production of new, technologically innovative products and then, as these products become standardized and more widely produced, production will shift to countries that specialize in less technologically advanced, well-established products.

The Basic Idea That Certain Countries Specialize in Producing New