Clean Chemical Corp. recently moved its operations from Houston, Texas, to Somalia. The decision to move was the result of new federal regulations regarding clean air standards that all chemical corporations are subjected to. A critic of globalization would say this example demonstrates what concern?
A) Free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries.
B) Facilities in advanced nations are moving to less developed countries that have lower environmental regulations.
C) Manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations.
D) As countries get richer, they relax their environmental and labor regulations.
E) More countries are working to meet the strict environmental standards set by the U.S. government.

Question

Quizplus · Accepted Answer

This example illustrates the concern that companies may relocate to countries with less stringent environmental regulations to avoid the costs associated with complying with stricter standards in more developed nations.