When a company in the country of the Republic of Congolia created a brand new high technology product,the demand for the product in the Republic of Congolia was high but very low or non-existent elsewhere.Thus the company decided not to locate manufacturing facilities elsewhere and simply meet the small foreign demand via exports.The theory that best explains the company's policy is

Question

Quizplus · Accepted Answer

The company's decision to only meet small foreign demand via exports and not establish manufacturing facilities elsewhere can be explained by the product life cycle theory. This theory suggests that a product goes through stages of introduction, growth, maturity, and decline and that the demand for the product may differ in various regions depending on the stage of the product's life cycle. In this case, it appears that the demand for the product is only high in the Republic of Congolia, which is likely in the introduction or growth stage of the product's life cycle. Therefore, it makes sense for the company to focus on exporting to satisfy this demand rather than establishing manufacturing facilities elsewhere.

When a Company in the Country of the Republic of Congolia