Final answer:
The assertion regarding the adaptation strategy is false; the correct term is standardization strategy. Adaptation involves customizing products for different markets, contrary to the claim in the question. Open trade policies, not import substitution, are linked to successful economic development.
Step-by-step explanation:
The statement that an adaptation strategy involves the product remaining virtually unchanged while extending it in markets outside the home country is false. The strategy that describes this approach is known as a standardization strategy or globalization strategy, wherein a company uses the same product and marketing strategy across different countries without significant changes. On the other hand, an adaptation strategy would involve tailoring products to meet the specific needs and preferences of customers in each individual market.
When discussing economic development, it has been observed that no country that has solely relied on a strategy of import substitution has been remarkably successful. Successful economies, particularly in Asia, have embraced openness to both imports and exports. This approach has played a pivotal role in accelerating their development processes.