Which theory explains how products and production move from developed countries to lesser developed nations?

Question

Quizplus · Accepted Answer

The theory that explains how products and production move from developed countries to lesser developed nations is the Product Cycle Theory. According to this theory, a product goes through a cycle – from being new and innovative to eventually becoming standardized and commoditized. During the early stage of the product cycle, production is typically located in the country of origin – a developed country with high levels of innovation and research and development (R&D) capabilities. As the product becomes more standardized and demand grows in other markets, production may shift to lesser developed nations where production costs are lower.

Which Theory Explains How Products and Production Move from Developed