According to the product life-cycle theory, while demand for new products is starting to grow rapidly in the United States, demand in other advanced countries
A) remains limited to high-income groups.
B) necessitates production of that product in those countries.
C) necessitates outsourcing of production to low-cost locations.
D) raises the cost of production in the United States.
E) causes a shift in the position of the United States from that of an exporter to an importer.

Question

Quizplus · Accepted Answer

In the early stages of the product life cycle, demand in other advanced countries is typically limited to high-income groups as the product is new and not yet widely adopted.

According to the Product Life-Cycle Theory, While Demand for New