The Product Life Cycle Theory of Comparative Advantage Predicts That

question 55

Multiple Choice

The product life cycle theory of comparative advantage predicts that a new product will be first produced and exported by:

• A)the nation that first demanded the new product.
• B)the first firm to successfully copy the technology.
• C)the nation in which it was invented.
• D)the countries with the most stable economies and the fewest restrictions on foreign trade.
• E)the company with the most extensive network of international distributors for the product.

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Definitions:

Inner Layer

The deeper or internal part of something, often used in a metaphorical sense to describe the core aspects of concepts or objects.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, giving rise to the lining of the digestive and respiratory systems.

Ectoderm

The outermost layer of cells in the developing embryo, giving rise to the nervous system and skin.

Blastocyst Differentiation

The process during early embryonic development where a blastocyst forms distinct cell layers that will develop into various organs and tissues.