Vernon Predicts That as the Demand for a New Product

question 15

Multiple Choice

Vernon predicts that as the demand for a new product starts to grow in other advanced countries:

• A)it becomes worthwhile for firms to invest in low-cost domestic labor in the United States.
• B)they deem it worthwhile to invest in production facilities in the United States.
• C)it is not worthwhile for firms in those countries to start producing the new product.
• D)the potential for exports from the U.S.begins to get limiteD.

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