When a firm develops a drastically simplified version of a product due to lack of purchasing power in a foreign market the process is referred to as:
A) Forward innovation
B) Backward innovation.
C) Reshoring
D) Outsourcing

Question

Quizplus · Accepted Answer

Backward innovation refers to developing a simpler version of a product due to limitations in the purchasing power of a particular foreign market. This is done in order to cater to the needs and demands of consumers who may not be able to afford the original or more advanced version of the product.

When a Firm Develops a Drastically Simplified Version of a Product