Which of the following is the first theory to incorporate dynamic changes in patterns of trade?
A) Strategic trade
B) Mercantilism
C) Product life cycle
D) Absolute advantage

Question

Quizplus · Accepted Answer

The product life cycle theory, developed by Raymond Vernon in the 1960s, was the first theory to incorporate dynamic changes in patterns of trade based on the evolution of a product from a new innovation to a mature product in its life cycle. This theory suggests that as a product moves through its life cycle, production shifts from the innovating country to other countries that can produce the product more efficiently, leading to changes in the patterns of trade. The product life cycle theory is the first theory to incorporate dynamic changes in patterns of trade, which suggests that as a product matures and becomes standardized, production tends to shift from the country where it was first introduced to other countries where it can be produced more efficiently.

Which of the Following Is the First Theory to Incorporate