Because a growing number of new products are now introduced simultaneously in the United States,Japan,and the advanced European nations,Vernon's product life-cycle is limited in explaining world trade patterns.

Question

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Vernon's product life-cycle theory is based on the assumption that new products are first introduced in developed countries and then gradually transition to developing countries over time. However, with the increasing globalization of markets, many new products are now introduced simultaneously in multiple advanced economies, making Vernon's theory less relevant in explaining world trade patterns.

Because a Growing Number of New Products Are Now Introduced