7 According to the product life cycle model, which of the following statements regarding comparative
advantage is correct?
(A) Comparative advantage may move from one country where a product is invented to another as the
product matures.
(B) For agricultural or homogeneous industrial goods, comparative advantage is determined by the stage
of the life cycle these products are in.
(C) Comparative advantage always stays in the country where a product is invented no matter what stage
of the life cycle it is in.
(D) Comparative advantage depends upon a country’s relative endowment of skilled workers and its ability
to invent.
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