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Profit-seeking multinational companies shift their production from countries with strong environmental standards to countries with weak ones. This phenomenon is called race to the bottom.
The phrase "race to the bottom" describes a situation in which a corporation, state or country tries to undercut the prices of its rivals by compromising quality standards, worker safety or lowering labor expenses. Governments may engage in a race to the bottom in an effort to entice business or raise tax revenues. In an effort to draw investment, such as the construction of a new factory or corporate office, a jurisdiction could loosen rules or decrease taxes while compromising the interests of the general public.
Race to the bottom is a word used to describe unethical rivalry that has crossed ethical limits and may be harmful to the parties involved, even though there are appropriate ways to fight for financing and industry funds.
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