Question

Under the Product Cycle Theory, foreign demand can be initially satisfied by exporting.

a. True
b. False

Answer 1

Under the Product Cycle Theory, foreign demand can be initially satisfied by exporting.

Step-by-step explanation:

Under the Product Cycle Theory, foreign demand can be initially satisfied by exporting. This theory suggests that when a product is first introduced, it is likely to be produced and sold in the home country before expanding to foreign markets. This allows the company to establish a presence and test the product's market potential before investing in foreign production facilities.