The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-The product life cycle theory of comparative advantage predicts that a new product will first be produced and exported by:

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-The product life cycle theory of comparative advantage predicts that a new product will first be produced and exported by:

Quizplus · Accepted Answer

The product life cycle theory of comparative advantage states that a new product will first be produced and exported by the nation in which it was invented. This is because the country that invents a new product is likely to have a head start in terms of expertise, technology, and infrastructure needed for its production. As a result, they have a comparative advantage in producing and exporting the new product. Therefore, the correct answer is C.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity