Question

____ theory of international trade suggests that the production of products is likely to switch from countries over time.

o a. competitive advantage
o b. new trade
o c. comparative advantage
o d. product life - cycle
o e. heckscher - ohlin

clear my choice

Explanation:

The product - life - cycle theory of international trade posits that as a product matures, its production is likely to shift from one country to another. For example, a new high - tech product may first be produced in a developed country where innovation occurs. As the product becomes more standardized and cost - cutting becomes crucial, production may move to countries with lower labor costs. Other theories like competitive advantage focus on a firm's or country's overall edge, new trade theory on economies of scale and imperfect competition, comparative advantage on opportunity costs, and Heckscher - Ohlin on factor endowments, but they don't specifically address the shifting of production over a product's life cycle as directly.

Answer:

D. Product life - cycle