On Which of the Following Observations Was Raymond Vernon's Product

question 82

Multiple Choice

On which of the following observations was Raymond Vernon's product life-cycle theory based?

• A)The wealth and size of the U.S.market gave U.S.firms a strong incentive to develop new consumer products.
• B)The high cost of U.S.labor gave U.S.firms an incentive to develop cost-saving process innovations.
• C)The United States developed a very large proportion of the world's new products for most of the twentieth century and sold them first in the U.S.market.
• D)The United States exports goods that heavily use skilled labor and imports heavy manufacturing products that use large amounts of capital.
• E)The United States has long been a substantial exporter of agricultural goods,reflecting in part its unusual abundance of arable land.

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Definitions:

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, measuring financial health.

Initial Cost

The acquisition cost of an asset or investment, covering all expenses involved in making the asset operational, including purchase price, installation, and setup.

Payback Period

The time required for an investment to generate income or profits equal to the original cost of investment.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with an organization's strategic goal.