Question

The product life-cycle theory: Select one: a. was a strong predictor of trade patterns during the 1800s. b. was useful for explaining the pattern of trade during the brief period of American global dominance. c. proved to be a poor explanation of world trade patterns during the 1960s and 1970s. d. remains a relevant theory of explaining international trade in the modern world.

Answer 1

b. was useful for explaining the pattern of trade during the brief period of American global dominance.

Step-by-step explanation:

A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.

Generally, there are four (4) stages in the product-life cycle;

1. Introduction.

2. Growth.

3. Maturity.

4. Decline.

The theory of product life cycle asserts that all the raw materials or parts and the labour used for the manufacturing of the product must come from the specific location or area wherein it was produced for optimum profit.

Hence, the product life-cycle theory was useful for explaining the pattern of trade during the brief period of American global dominance.