Race to the bottom environment
Why Comparative Advantage Matters Comparative advantage refers to an economy's ability to produce goods and services at a lower opportunity cost than trade partners. Birdsall, N. For some firms and industries, national environmental standards are considered a threat to their international competitiveness. Lee, he stated that the race between states to entice companies to incorporate in their jurisdiction was "one not of diligence but of laxity", meaning states were relaxing rules instead of refining race to the bottom environment to gain an edge over competitors. When a company spoils the environment during environkent, the public pays in the long run no matter how much of a short-term boost the business activity generated.