If industrialized countries impose environmental constraints, manufacturers may seek opportunities in poor countries that do not have or do not enforce environmental constraints. This practice is known as the
A) production sharing system.
B) race to the bottom.
C) cost-profit equation.
D) speculative spread.
E) shark attack.

Question

Quizplus · Accepted Answer

The practice described in the question is known as the "race to the bottom." This refers to the phenomenon of countries lowering their environmental standards in order to attract investment and manufacturers who seek to avoid the costs of complying with more stringent regulations in other countries. This can result in a situation where environmental standards are continuously lowered as countries try to compete with each other, ultimately leading to a situation where the environment is severely degraded.

If Industrialized Countries Impose Environmental Constraints, Manufacturers May Seek Opportunities