According to Raymond Vernon (1966),

Question

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Raymond Vernon's product life cycle theory suggests that U.S. firms undertake foreign direct investment (FDI) at a particular stage in the life cycle of the products that they initially introduced (A). The theory also states that the majority of new products, such as computers, televisions, and mass-produced cars, were developed by U.S. firms and first marketed in the United States (B). Furthermore, in the early stage of the product life cycle, the demand for the new product is relatively insensitive to the price and thus the pioneering firm can charge a relatively high price, thus making it easier for them to recover their research and development costs (C). Therefore, all three options are correct (D).