According to the international product life cycle theory,in which of the following stages is a good produced in the home country because of uncertain domestic demand and to keep production close to the research department?
A)Standardized product stage
B)Maturing product stage
C)Declining product stage
D)New product stage

Question

Quizplus · Accepted Answer

According to the international product life cycle theory, in the new product stage, a good is produced in the home country because of uncertain domestic demand and to keep production close to the research department. This is because the product is new and there is uncertainty about its demand in foreign markets, thus it is safer to produce it in the home country where the research and development team is located. As the product becomes established in the market, production is moved to foreign countries where labor costs are lower.

According to the International Product Life Cycle Theory,in Which of the Following