An international U.S. based company sets up a production unit in a developing country with poor environmental regulations. This contributes to:

Question

Quizplus · Accepted Answer

The setting up of a production unit in a developing country with poor environmental regulations contributes to the global tragedy of the commons. This is because the company is exploiting and degrading natural resources that are shared by all humans, and the absence of strong regulations allows the company to externalize the environmental costs to society and the global community. This leads to negative environmental impacts and undermines the sustainability of the planet.

An International U