ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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countries ought to turn out and export merchandise which are well endowed and import merchandise which is in brief provide
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a corporation can begin to export its product and later battle foreign direct investment because the product moves through its life cycle
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a country ought to specialize merchandise including comparative, or relative price, advantage compared with different countries and import comparative disadvantage merchandise
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a country that has absolute advantage produces larger output than countries who have an equivalent quantity of resources
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Detailed explanation-1: -The theory suggests that early in a product’s life-cycle all the parts and labor associated with that product come from the area where it was invented. After the product becomes adopted and used in the world markets, production gradually moves away from the point of origin.
Detailed explanation-2: -The 4 stages of the product life cycle are introduction, growth, maturity, and decline. Learn how to leverage this into your business strategy.
Detailed explanation-3: -The product life-cycle is an important tool for marketers, management and designers alike. It specifies four individual stages of a product’s life and offers guidance for developing strategies to make the best use of those stages and promote the overall success of the product in the marketplace.
Detailed explanation-4: -The International Product Life Cycle Theory was authored by Raymond Vernon in the 1960s to explain the cycle that products go through when exposed to an international market. The cycle describes how a product matures and declines as a result of internationalization.