The Product Life Cycle Theory Predicts That Comparative Advantage Shifts

question 91

Multiple Choice

The product life cycle theory predicts that comparative advantage shifts away from the country of origin if:

• A)the product is introduced in many countries simultaneously.
• B)the product is highly demanded in international markets.
• C)the demand for the product drastically declines in the domestic market of the country where it was invented.
• D)other countries have lower manufacturing costs using the now-standardized technology.
• E)other countries develop highly skilled labor forces to improve product quality.

---

Definitions:

Environmental Protection Agency

A governmental organization responsible for the regulation of activities to protect human health and the environment by enforcing laws related to air and water quality and hazardous waste.

Solid Waste

Non-liquid, non-soluble materials ranging from municipal garbage to industrial wastes that contain complex, sometimes hazardous, substances.

Hazardous

Refers to materials or conditions that pose potential danger or risk to health, safety, or the environment.

Drinking Water

Water that is safe and clean for human consumption without the need for further treatment.