Vernon argues that early in the life cycle of a typical new product, w

QUESTION

Vernon argues that early in the life cycle of a typical new product, while demand is starting to grow rapidly in the United States, demand in other advanced countries:

A. remains limited to high-income groups.

B. necessitates production of that product in those countries.

C. necessitates outsourcing of production to low-cost locations.

D. raises the cost of production in the United States.

E. causes a shift in the position of the United States from that of an exporter to an importer.

ANSWER

A