Xerox first introduced the photocopier into the U.S.market,and then set up production facilities in Japan and Great Britain.This pattern of FDI is explained by the:
A)internalization theory.
B)paradigm of pragmatic internationalism.
C)absolute advantage theory.
D)product life-cycle theory.

Question

Quizplus · Accepted Answer

The product life-cycle theory states that often the same firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in foreign markets.Thus,Xerox introduced the photocopier in the United States,and it was Xerox that set up production facilities in Japan (Fuji Xerox)and Great Britain (Rank Xerox)to serve those markets.

Xerox First Introduced the Photocopier into the U