_________ suggests that in the first stage innovations are produced in the home developed country; in the second stage they are exported to other similarly developed countries; in the third stage,they start being produced in these developed countries; in the fourth stage they start being produced in low-wage developing countries.

Question

Quizplus · Accepted Answer

Vernon's product cycle theory suggests that innovations are first produced in the home developed country, then exported to other similarly developed countries, then produced in these developed countries, and finally produced in low-wage developing countries. Johanson and Vahlne's stages theory focuses on the internationalization process of firms, while Dunning's eclectic theory explains why firms choose to engage in foreign direct investment. Levitt's globalization theory argues that global markets are becoming more homogenous and that companies should focus on producing standardized products for these markets. None of these theories specifically address the stages of innovation production and export.

_________ Suggests That in the First Stage Innovations Are Produced