Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product? a. Product life cycle theory b. Economies of scale theory c. Theory of overlapping demands d. Theory of factor endowments

Which trade theory contends that a country that initially develops and exports a new product may eventually become an importer of it and may no longer manufacture the product? a. Product life cycle theory b. Economies of scale theory c. Theory of overlapping demands d. Theory of factor endowments

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 9PA

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Question

8) Which trade theory contends that a country that initially develops and exports a new product may
eventually become an importer of it and may no longer manufacture the product?
a. Product life cycle theory
b. Economies of scale theory
c. Theory of overlapping demands
d. Theory of factor endowments
8

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