According to the International Product Cycle Theory Comparative Advantage Shifts

question 9

Multiple Choice

According to the International Product Cycle Theory comparative advantage shifts to developing countries such as Mexico, India and China in the _________ stage of the cycle.

• A) First
• B) Second
• C) Third
• D) Fourth

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Definitions:

Tariff

A tariff is a tax imposed on imported goods and services, intended to make foreign products more expensive and protect domestic industries.

Import Quota

A government-imposed limit on the quantity of a specific good that can be imported into the country over a set period of time.

Tariff

A tax imposed by a government on imports or exports of goods to regulate trade and protect domestic industries.

Importing Country

A country that buys goods and services from other countries to meet domestic demand that cannot be met by internal production.