The product life-cycle theory suggests that trade patterns are influenced by where a new product is introduced.

Question

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According to the product life-cycle theory, trade patterns are influenced by where a new product is introduced. As the product moves through different stages of its life cycle, production shifts to countries with lower costs. This leads to changes in the trade patterns of the countries involved in the production and consumption of the product.

The Product Life-Cycle Theory Suggests That Trade Patterns Are Influenced