The product cycle follows which of the following production strategies?
A) high-income domestic market, high-income non-domestic market, developing country market
B) developing country market, moderate-income market, high-income domestic market
C) high-income domestic market, moderate-income market, developing country market
D) high-income domestic market, developing country market
E) None of the above

Question

Quizplus · Accepted Answer

The product cycle typically starts with innovation in high-income domestic markets, then moves to high-income non-domestic (foreign) markets as the product becomes more standardized and competitive pressures push for cost reductions, and finally, it reaches developing country markets as the product becomes more commoditized and production seeks the lowest cost base.

The Product Cycle Follows Which of the Following Production Strategies