The product cycle theory of trade is essentially a ?
Correct answer: B. dynamic long run trade theory
- A. static, short run trade theory
- B. dynamic long run trade theory
- C. zero-sum theory of trade
- D. negative-sum theory of trade
Explanation
Product-cycle theory explains how production and trade patterns change as a product moves from innovation to maturity and standardization. Because it focuses on change over time, it is a dynamic, long-run theory rather than a static short-run theory.
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