Vernon's international product life cycle theory: | Faculties

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Q. Vernon's international product life cycle theory:

(A) helps explain the movement from absolute advantage to comparative advantage.
(B) helps explain why a product that begins as a nation export often ends up becoming an import.
(C) shows why the United States, surprisingly, exports relatively more laborintensive goods and imports capital-intensive goods.
(D) extends the concept of comparative advantage by bringing into consideration the endowment and cost of factors of production.

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✅ Correct Answer: (B) helps explain why a product that begins as a nation export often ends up becoming an import.

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