According to the international product life cycle theory,in which stage of a product's life cycle does a company directly invest in production facilities in countries where demand is great enough to warrant production facilities?
A) new product stage
B) maturing product stage
C) standardized product stage
D) declining product stage

Question

Quizplus · Accepted Answer

According to the international product life cycle theory, during the maturing product stage, demand for a product has increased, and the product has become widely popular. At this stage, companies invest in production facilities in countries where demand is high enough to warrant local production, as it enables the company to reduce transportation costs and be more responsive to local market needs. Therefore, the correct answer is B) maturing product stage.

According to the International Product Life Cycle Theory,in Which Stage