Which of the following was the first international trade theory to account for changes in the patterns of trade over time?
A) Comparative advantage theory
B) Absolute advantage theory
C) Product life cycle theory
D) Factor endowment theory

Question

Which of the following was the first international trade theory to account for changes in the patterns of trade over time? 
A) Comparative advantage theory 
B) Absolute advantage theory 
C) Product life cycle theory 
D) Factor endowment theory

Quizplus · Accepted Answer

The product life cycle theory, developed by Raymond Vernon in the 1960s, was the first theory to account for changes in the patterns of trade over time. This theory explains how a product's life cycle (from introduction to maturity to decline) influences the location of production and the pattern of international trade.

Which of the Following Was the First International Trade Theory