Which of the following statements is true about product life cycle theory?
A)The theory was developed in the 1960s when the U.S.was the leader in R&D.
B)The international system of production is becoming too complicated to be explained by a simple version of the product life cycle theory.
C)It predicts that over time the U.S.switches from an exporting country of new products to an importing country.
D)all of the options

Question

Quizplus · Accepted Answer

Option A is true as the product life cycle theory was developed in the 1960s by Raymond Vernon when the US was ahead in R&D. Option B is true as the global economy has become more complex and integrated, making it difficult to apply a simple version of the theory. Option C is also true as the theory predicts that as products mature and become standardized, production moves to countries with lower labor costs, and the US becomes an importer of these products. Therefore, all options are correct making option D the correct answer.

Which of the Following Statements Is True About Product Life