The Product Life Cycle Theory of Comparative Advantage Predicts That

question 55

Multiple Choice

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

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

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Definitions:

Wealthy Landowners

Individuals or families that possess significant amounts of land, wealth, and influence, often playing a crucial role in agricultural, economic, and political spheres.

Nineteenth Century

The period from 1801 to 1900, characterized by industrialization, colonial expansion, and significant social, economic, and political changes.

Infant Mortality

The rate at which babies under one year of age die in a given population, often used as an indicator of the health and well-being of a community.

Population Increase

The growth in the number of people in a particular region or world over a period, often measured by birth rates, death rates, immigration, and emigration.