The ________ theory states that a country's export eventually becomes its import.
A) competitive advantage
B) factor proportions
C) international product life cycle
D) new trade

Question

Quizplus · Accepted Answer

The international product life cycle theory suggests that a product or service will go through four stages: new product, maturing product, standardized product, and declining product. As a product moves through these stages, its production will shift from the country of origin to lower-cost countries. As a result, a country that once exported the product may later become an importer of it. Therefore, option C is the correct answer.

The ________ Theory States That a Country's Export Eventually Becomes