This theory was developed by Vernon and explains why U.S. manufactures shift from exporting to FDI.
A) portfolio theory
B) product Life Cycle theory
C) internalization theory
D) exporting theory

Question

Quizplus · Accepted Answer

The Product Life Cycle theory developed by Vernon suggests that as a product reaches maturity and sales decline in its home market, companies look to expand globally through FDI rather than exporting. This is because FDI allows companies to have greater control over production, distribution and marketing of their products in foreign markets, and can lead to cost savings and improved market access.

This Theory Was Developed by Vernon and Explains Why U