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Load Previous Section 2 Attempt 2 of ,, Economics | Globalization & Protectionism | Summative Assessment Which of these practices provides evidence for the "race to the bottom" scenario? General Motors shifts automobile production to a country with weak environmental regulations. O Intel shifts computer production to a country with no import quotas. o Kraft shifts candy production to a country with a subsidized sugar industry Apple shifts iPhone production to a country with little regulation of worker safety. KPrevious Question 9 ?10120 Next Question> Submit Load Next Section

Explanation / Answer

1. Option D.

Race to the bottom scenario is a condition in which countries are tempted to relax labor,environmental and tax regulations due to International competition..

It mainly focusses on entering to low cost countries and less workers safety countries when they become integrated in world Economy.

2. Option C.

Protectionism is an indirect subsidy from consumers to producers .

Protectionist policies require domestic consumers to subsidize domestic producers.

So that domestic producers can take over established markets.

3. Option b.

In this type of protectionism the argument is to block the imports for sometime until those countries mature and provide long term economic benefits of having a healthy work place.

4. Option D.

Exchange rates for currency causes fluctuations.

Some see decrease in currency.

Decrease in currency value allows product and goods to be sold at cheaper price,

While some market where foreign products are sold actually see price increase.

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