According to the Product Life-Cycle Theory, the High Cost of U.S

question 15

Multiple Choice

According to the product life-cycle theory, the high cost of U.S. labor gave U.S. firms an incentive to

• A) lower costs of services to offset a fall in demand.
• B) develop cost-saving process innovations.
• C) invite foreign direct investment in domestic industries.
• D) embrace and promote open market capitalism.
• E) import new consumer products and export agricultural products.

---

Definitions:

Aldehyde Dehydrogenase

An enzyme that converts aldehyde to acetic acid.

Metabolism

The chemical processes that occur within a living organism in order to maintain life, involving the conversion of food to energy, elimination of nitrogenous wastes, and the synthesis of necessary compounds.

Legal Age

A defined age at which an individual is granted by law the rights and responsibilities of an adult.

Adolescents

Young people in the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.