According to the product life cycle theory,as demand for a product starts to grow in other advanced countries,potential for exports from the U.S.will gradually be limited.

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Over time,as demand for a new product starts to grow in other advanced countries,it becomes worthwhile for foreign producers to begin producing for their home markets.In addition,U.S.firms might set up production facilities in those advanced countries where demand is growing.Consequently,production within other advanced countries begins to limit the potential for exports from the United States.

According to the Product Life Cycle Theory,as Demand for a Product