Investors in developing countries face minimal risk that environmental standards in those countries will become stricter over time and therefore is a competitive advantage in locating manufacturing facilities there.

Question

Quizplus · Accepted Answer

Environmental standards in developing countries have been known to become stricter over time. This can be due to pressure from international organizations, domestic protests and political shifts, and the potential economic and health implications of environmental degradation. Therefore, investors should not assume that locating manufacturing facilities in these countries will always be a competitive advantage.

Investors in Developing Countries Face Minimal Risk That Environmental Standards