Which of the Following Is a Major Disadvantage of the Product

question 60

Multiple Choice

Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

• A) The theory's arguments seem ethnocentric and increasingly dated.
• B) The theory failed to explain the dominance of developed nations.
• C) The theory applies only when a poor nation invents a new product.
• D) The theory cannot be used to explain the production of luxury products.

---

Definitions:

Net Worth

The total assets minus total outside liabilities of an individual or a company, representing the financial position at a given moment.

Proxy Solicitation

The process of obtaining authority to vote on behalf of shareholders.

Securities and Exchange Commission

A U.S. government agency that oversees securities transactions, activities of financial professionals, and maintains fair and orderly functioning of the securities markets.

Insider Trading

The illegal buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.