The Product Life Cycle Theory of Comparative Advantage Predicts That

question 45

Multiple Choice

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

• A) country that first demanded the new product.
• B) first firm to successfully copy the technology.
• C) country in which it was invented.
• D) countries with the most stable economies and fewest restrictions on foreign trade.
• E) company with the most extensive network of international distributors for the product.

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Definitions:

Foreign Corporation

A corporation incorporated in one state doing business in another state. See also alien corporation.

Conditional Indorsements

Endorsements made on a negotiable instrument that specify certain conditions that must be met before the endorsement is considered valid.

Effective

Producing a desired or intended result, often used in contexts relating to efficiency, productivity, or the power to produce a specified effect.

Payee

The individual or entity to whom a payment is directed or owed.