According to the product life-cycle theory,the locus of global production initially switches from the U.S.to other advanced nations and then from those nations to developing countries.The consequence of this trend for the pattern of world trade is that over time the U.S.:

Question

Quizplus · Accepted Answer

The product life-cycle theory suggests that production shifts from advanced nations to developing countries over time. As a result, the U.S. would shift from being an exporter of the product to being an importer of the product. This is because other countries, particularly developing countries, would be able to produce the product more cheaply and efficiently than the U.S. and hence would become the main exporters of the product.

According to the Product Life-Cycle Theory,the Locus of Global Production