The least-cost theory is attributed to Alfred Weber. The least-cost theory suggests that all major corporations make their decisions about where to house their production and manufacturing facilities based on the least possible combination of costs, so as to derive the greatest possible profit. It is instrumental for understanding the nature and decision making process of multinational corporations.

A “footloose company” is not tied to any particular location and can relocate in response to changing economic conditions. All of the products—except diamonds—are either going to cause the companies that produce and sell them to be either market or material oriented. This is because diamonds that are mined are the product that is sold by the company. In other words, there is no assembly required. Subsequently, there is no need to consider the relative merits of locating manufacturing centers closer to raw materials or large markets.

Walt Whitman Rostow's 1960 model of stages of economic growth describes how societies become modern, industrial economies over five separate stages. The "take-off" stage, which is the third step, describes the moment when societies move toward full industrialization in certain specific ways, such as technological innovations, urbanization, production of secondary goods such as textiles, and intense growth in specific sectors.

Rostow's Stages of Economic Growth include the following five stages: Traditional Society; Preconditions for Take-Off; Take-Off; Drive to Maturity; and Age of High Mass Consumption. Rostow's model is one of the most significant historical models of economic growth. The model does not include "Postmodern Society."

The second stage of Rostow’s Stages of Development is generally described as “prerequisites for rapid economic growth.” It is the intermediary step between a traditional, agrarian society and industrial explosion. It primarily involves external investment and a much greater exploitation of natural resources.

There are five stages in Rostow’s Stages of Development: traditional society, preconditions to takeoff, takeoff, drive to maturity, and age of high mas consumption. In the 1960s, American economist called W.W. Rostow developed this theory. It is based off of the models of economic activities.

Rostow’s Stages of Development model is only concerned with economic geography; therefore, it would be unreasonable to criticize it for focusing on economic differences. The primary criticism leveled at Rostow’s model by contemporary geographers is that it presumes that the experience of western economies—and their path of development—can be universally applied. Modern evidence suggests that there are multiple paths to development; furthermore, evidence suggests that development can take on numerous forms.

The fourth stage of Rostow’s stages of Development primarily involves the development of a large commercial economy, something akin to consumer-capitalism. It also generally involves favorable integration into the global economy.

The fifth stage of Rostow’s Stages of Development is characterized by widespread consumerism and mass consumption. According to Rostow this is the final stage in the development of a country’s economy.

Introduction of investment from external sources is a characteristic of the second stage of Rostow’s model so we can eliminate that answer choice and the one that reads “all of these answers are correct.” Although, social and political change can accompany the third stage of Rostow’s model they do not define it in the way that large-scale investment in manufacturing and infrastructure do. In Rostow’s model the third stage represents the biggest revolutionary change in a country’s economic development. It is when the majority of employment transitions from primary economic activities to secondary economic activities - as has happened recently in China.