The product life-cycle theory predicts that
A)over time the United States switches from an exporting country of new products to an importing country.
B)over time the United States switches from a comparative advantage in R&D to a service economy.
C)over time the United States education system maintains the country's dominant position in the world economy.
D)none of the options

Question

Quizplus · Accepted Answer

The product life-cycle theory proposes that as products mature, their demand declines and production shifts from the innovating country to other countries where production costs are lower. Therefore, over time, the United States switches from an exporting country of new products to an importing country.

The Product Life-Cycle Theory Predicts That