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Why do low-income countries like Brazil, Egypt, or Vietnam have lower environmental standards than high-income countries like the Germany, Japan, or the United States?

Short Answer

Expert verified

Because of the below reason low-income countries like Brazil, Egypt, or Vietnam have lower environmental standards than high income countries like the Germany, Japan or the United states.

Step by step solution

01

Step 1. Meaning of 'race to the bottom'.

It refers to a competitive situation where a company, state or nation attempts to undercut the competitions prices by sacrificing quality standards or workers safety or reducing labor costs.

02

Step 2. Low-income countries typically have lower environmental standards than high-income countries. 

Low income countries have low environmental standards because they focus more on items like- food, education, healthcare etc. rather than environment.

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