The theory that explains the shift of color TV sets production from the United States to Japan and Taiwan is called the _____ theory.

Question

Quizplus · Accepted Answer

The product life cycle theory explains the shift of color TV sets production from the United States to Japan and Taiwan, as the United States was in the maturity stage of the product life cycle, while Japan and Taiwan were in the growth stage with lower production costs and increasing technological capabilities. This theory suggests that firms tend to shift production to countries where production costs are lower and there is a greater potential for growth.

The Theory That Explains the Shift of Color TV Sets