Question

Clean Chemical Corp. recently moved its operations from Houston, Texas, to Somalia. The decision to move was the result of new federal regulations regarding clean air standards that all chemical corporations are subjected to. A critic of globalization would say this example demonstrates what concern?a. As countries get richer, they relax their environmental and labor regulations.b. Manufacturing enterprises are put at a competitive disadvantage by moving their production facilities to nations that do not have burdensome regulations.c. More countries are working to meet the strict environmental standards set by the U.S. government.d. Free trade discourages firms from advanced nations to move manufacturing facilities to less developed countries.e. Facilities in advanced nations are moving to less developed countries that have lower environmental regulations.

Answer 1

Answer:

The correct answer is letter "E": Facilities in advanced nations are moving to less developed countries that have lower environmental regulations.

Explanation:

To reduce costs and avoid strict regulations that could harm their operations, countries move their businesses to developing or underdeveloped countries. Most of the time this is considered an unethical practice because it takes away job opportunities in the country where the operations of the company will be removed and is an easy way to surpass necessary regulations that other countries do not even consider that could bring negative damages to society.