One early response to the failure of the Heckscher-Ohlin theory to explain the observed pattern of international trade was the __________.

Question

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The product life-cycle theory was proposed as an early response to the failure of the Heckscher-Ohlin theory to explain the observed pattern of international trade. According to this theory, a product's life cycle has three stages (introduction, growth, and maturity/decline) and during each stage, the product is likely to be produced in different countries, depending on the country's ability to produce the product efficiently.

One Early Response to the Failure of the Heckscher-Ohlin Theory