According to the Product Life-Cycle Theory,the Locus of Global Production

question 92

Multiple Choice

According to the product life-cycle theory,the locus of global production initially switches from the United States to other advanced nations and then from those nations to developing countries.Which of the following is most likely to be a consequence of these trends?

• A)U.S.imports become less capital-intensive than U.S.exports.
• B)The pattern of international trade is affected by differences in factor endowments rather than differences in productivity.
• C)Over time,the United States switches from being an exporter of a product to an importer of the product.
• D)The wage rates in the United States decrease.
• E)Developing nations fail to upgrade their skill levels to compete with advanced countries.

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Definitions:

Relationship-Threatening Information

Information that potentially harms or destabilizes interpersonal relationships within an organization or group.

Task Conflict

Refers to disagreements among group members related to the content and outcomes of the task being performed.

Ideology

A set of beliefs, values, or principles that governs the way individuals or groups think and act in a societal context.

Managerial Grid Model

A framework for understanding leadership styles based on concern for people and concern for production.