according to the product cycle hypothesis, a product will.be produced only in an
ID: 1169196 • Letter: A
Question
according to the product cycle hypothesis, a product will.be produced only in an industrialized economy.whenA. It is first introduced B. The production technology becomes standard C. Patents expire D. The production no longer requires significant research and development according to the product cycle hypothesis, a product will.be produced only in an industrialized economy.when
A. It is first introduced B. The production technology becomes standard C. Patents expire D. The production no longer requires significant research and development
A. It is first introduced B. The production technology becomes standard C. Patents expire D. The production no longer requires significant research and development
Explanation / Answer
The answer to this question is Option (A):
According to the product cycle hypothesis, a product will.be produced only in an industrialized economy when
(A) IT IS FIRST INTRODUCED.
The theory of the product cycle hypothesis, assumes two types of economies. One economy is developed, industrialized and well equipped and the other economy which is comparatively less equipped.
A new product is introduced in an industrialized economy and sold in the less developed economy. Once the Product becomes known and old, the production gets shifted from the developed to the lesser developed economy.This happens due to the coparative cost advantage in the lesser developed economy.
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