____ theory of international trade suggests that the production of products is likely to switch from…
____ theory of international trade suggests that the production of products is likely to switch from countries over time.\n\no a. competitive advantage\no b. new trade\no c. comparative advantage\no d. product life - cycle\no e. heckscher - ohlin\n\nclear my choice
Answer
Brief Explanations:
The product - life - cycle theory of international trade posits that as a product matures, its production is likely to shift from one country to another. For example, a new high - tech product may first be produced in a developed country where innovation occurs. As the product becomes more standardized and cost - cutting becomes crucial, production may move to countries with lower labor costs. Other theories like competitive advantage focus on a firm's or country's overall edge, new trade theory on economies of scale and imperfect competition, comparative advantage on opportunity costs, and Heckscher - Ohlin on factor endowments, but they don't specifically address the shifting of production over a product's life cycle as directly.
Answer:
D. Product life - cycle