Which of these refers to the theory that a company will begin by exporting its products and later undertake foreign direct investment as a product moves through its life cycle?
A) Eclectic life cycle
B) Market imperfections life cycle
C) International product life cycle
D) Market power life cycle

Question

Quizplus · Accepted Answer

The international product life cycle theory suggests that as a product enters new markets, a company will initially export its products, then undertake foreign direct investment as the product moves through its life cycle. This theory explains how a product that is initially unique to a particular country eventually becomes standardized and can be produced in other countries, leading to foreign direct investment to take advantage of lower production costs. Option A (Eclectic life cycle) is not a recognized theory, option B (Market imperfections life cycle) refers to a theory of economic growth, and option D (Market power life cycle) is not related to this concept.

Which of These Refers to the Theory That a Company