🎴 Flashcard Mode
International Economic Organizations and Globalization
Card1 / 15
Mastered0
Review0
QuestionClick to flip
Globalization has led to a phenomenon known as the 'race to the bottom', where countries compete to offer the lowest wages and weakest environmental regulations to attract investment. What is the primary driver behind this phenomenon?
AnswerClick to flip back
A
Increased competition among countries for foreign direct investment
💡 Explanation:
In a globalized economy, countries compete fiercely to attract foreign direct investment, often by offering lower wages, weaker environmental regulations, and tax incentives to businesses. This phenomenon is known as the 'race to the bottom'.