According to the product life-cycle theory,the locus of global production initially switches from the United States to other advanced nations and then from those nations to developing countries.Which of the following is most likely to be a consequence of these trends?

Question

Quizplus · Accepted Answer

As the locus of global production shifts from the United States to other advanced nations and then to developing countries, the United States may eventually switch from being an exporter of a product to an importer of the product. This is because the comparative advantage of the United States in producing the product may eventually diminish as other countries develop similar capabilities, and it may become more cost-effective to import the product from other countries. This is a common pattern observed in the product life-cycle theory. The other options are less likely to be a consequence of these trends.

According to the Product Life-Cycle Theory,the Locus of Global Production