The ability of companies to move to locations where wages are lowest is seen as a major cause of
A)tyranny of location.
B)process of economic development.
C)race to the bottom.
D)declining terms of trade.

Question

Quizplus · Accepted Answer

The ability of companies to move to locations where wages are lowest is referred to as the "race to the bottom" where companies compete with each other by lowering their production costs, including wages. This trend leads to a downward spiral in wages and working conditions, resulting in a race to the bottom.

The Ability of Companies to Move to Locations Where Wages