Which of the following is a major disadvantage of the product life-cycle theory introduced by Vernon?

A. The theory’s arguments seem ethnocentric and increasingly dated.

B. The theory failed to explain the dominance of developed nations.

C. The theory applies only when a poor nation invents a new product.

D. The theory cannot be used to explain the production of luxury products.

ANSWER:

A. The theory’s arguments seem ethnocentric and increasingly dated.