Final Answer:
The provided options do not align with the typical progression of the Product Cycle Theory, as they lack the characteristic stages proposed by economist Raymond Vernon. Thus, the correct option is e. None of these choices are correct.
Step-by-step explanation:
The Product Cycle Theory, proposed by economist Raymond Vernon, suggests that a product goes through distinct stages in its life cycle: introduction, growth, maturity, and decline. In the context of international trade, this theory posits that the production of goods evolves over time, starting with innovation in the home country and eventually moving to other nations. However, none of the events presented in the options directly align with the Product Cycle Theory.
Option (a) involves importing components from Taiwan, which is a common practice but doesn't necessarily confirm the theory. Option (b) focuses on cost reduction in Mexico, but it doesn't reflect the evolutionary stages of the product cycle. Option (c) mentions establishing a plant in Germany for cost and competition reasons, but this is more about strategic business decisions than conforming to the Product Cycle Theory. Therefore, the correct answer is (e) None of these choices are correct, as none of the events distinctly confirm the predictions of the Product Cycle Theory.
In essence, the Product Cycle Theory is centered around the idea of innovation, growth, and international expansion based on a product's life cycle. The options presented mainly touch on aspects of international business strategy and cost considerations rather than the evolutionary trajectory of a product across different countries. Therefore, none of the provided events directly support the confirmation of the Product Cycle Theory. The correct answer is e. None of these choices are correct.