Intricate Wiring Corp

Multiple Choice

Intricate Wiring Corp., based in Ohio, creates a brand new high-tech product. The demand for the product in the United States is high but very low or non-existent elsewhere. The company decides not to locate manufacturing facilities elsewhere and will simply meet the small foreign demand via exports. The theory that best explains the company's policy is

A) product life cycle theory.
B) mercantilism.
C) the Leontief paradox.
D) Heckscher-Ohlin theory.
E) free trade theory.