Raymond Vernon noticed that in the 1960s, the wealth and size of the U. S. market was a natural incentive to develop new consumer products. What theory did he propose based on this fact?
a. new trade
b. absolute advantage
c. mercantilism
d. product life-cycle
e. comparative advantage

The correct answer is letter "D": product life-cycle.

Explanation:

American economists Raymond Vernon (1913-1999) proposed the "International Product Life-Cycle" in 1966 to explain how goods and services are introduced in the market, reach a peak, to later be forgotten by consumers. According to Vernon, the cycle is composed of four (4) stages:

answer; planning;

the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.