Critical View Of Race To The Bottom And Globalization:.

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Critical view of Race to the Bottom and Globalization:
Race to the bottom and Globalization has a critical relationship between them. Critics say that Globalization expedites the tendency of adopting the concept race to the bottom. Race to the bottom concepts says that the characteristic of continuous lowering the standard in terms of labor or environment as a result of the continuous competition.
This concept mainly affects the developing countries in two ways directly and directly. Developing countries might have the perception that to cope with the global competition they need to decrease their product cost as much as possible. This phenomena leads them to behave in two ways.
1) Countries may directly soften the environmental laws and
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From above examples we have seen that even developed countries have to deal with Race to the bottom affect, but as their income level rise their importance also shifts to the environmental issues. Developing countries concerns on environmental regulation is the erosion of their competitive position due to the movement of pollution-intensive industries to countries with lower standards. According to the research after global awareness of environmental safety arises, it can be concluded that neither study on trade flows nor on the FDI shows the International Traders choose their business location based on environment regulations rather than all other important factors.
There are many evidences that support the opposite scenario as well. Globalization supports to take proper measure for environmental safety. The study of Frankel and Rose (2003) and Busse (2004) showed many evidences that clearly defines how Globalization can positively effect the environment. According to Busse environmental regulations is influenced by income level. The primary effect appears to come via income itself. When a country experiences economic growth its per capita income increases it can pays attention to environmental laws and regulation after serving its basic needs.
Frankle and Rose found positive co elation between openness to trade and environmental quality. Openness to trade helps developing countries to enjoy both incentive to adopt green
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