Vernon’s international product life cycle theory :
A. helps explain the movement from absolute advantage to comparative advantage.
B. shows why the United States, surprisingly, exports relatively more labor-intensive goods and imports capital-intensive goods.
C. extends the concept of comparative advantage by bringing into consideration the endowment and cost of factors of production.
D. helps explain why a product that begins as a nation export often ends up becoming an import.
Answer:D
Vernon’s international product life cycle theory :
A. helps explain the movement from absolute advantage to comparative advantage. B. shows why the United States, surprisingly, exports relatively more labor-intensive goods and imports capital-intensive goods. C. extends the concept of comparative advantage by bringing into consideration the endowment and cost of factors of production. D. helps explain why a product that begins as a nation export often ends up becoming an import.