The international product life cycle:

Question

Quizplus · Accepted Answer

The international product life cycle theory is concerned with the role of innovation in trade patterns. It argues that products go through stages of innovation, growth, maturity, and decline, and that the location of each stage is influenced by factors such as technology, consumer demand, and labor costs. Therefore, option C is the most appropriate answer. Option A is incorrect as it describes the linkage between international trade and gross national income, which is not directly related to the product life cycle. Option B is incorrect as it refers to the theory of comparative advantage. Option D is incorrect as it combines options A and C, both of which are not completely accurate. Option E is incorrect as it suggests that none of the options are correct, which is not the case.

The International Product Life Cycle