International Political Economy

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Environmental , labor and social policies that block downward leveling must be created and implemented to prevent this occurrence The reason why these factors are important is because the second set of factors that prevent the race to the bottom from occurring do not necessarily prevent the occurrence of the first

Occurrences such as deregulation and minimizing the role of the government in the redistribution capacity to offer goods and services to the public would lead to the downward spiral of social welfare In to prevent this race to the bottom and the degradation of the social welfare of a number of countries , certain governments have begun adopting models that discourage such a trend

In the global economy of today , these relatively cheap factors of production , foremost of which are labor and raw materials , are found in the bottom part of the global economy , meaning that these are usually in the developing countries This race to the bottom occurs therefore when the governments , trade unions and labor advocates , in their efforts to improve trade and attract direct foreign investments adopt neo-liberal policies but in doing so trade off the social welfare of its citizens

Paper Topic: International Political Economy What are the facilitating factors` for a race to the bottom to occur What are the factors that prevent such a race from occurring

The role of the government in implementing these changes to prevent the downward leveling of the social standing of its citizens must be emphasized to prevent the race to the bottom from occurring

The role of governments , particularly in the developing countries where these factors of production can be found , lies in being able to prevent the negative effects that the race to the bottom brings

Factors such as active legislation and social involvement have been shown to provide a certain influence in preventing this race to the bottom from occurring

In blocking the race to the bottom , governments need to take a more active role in improving social welfare in the countries

Why or why not In understanding the facilitating factors that contribute to the race to the bottom , it is first important to know that this race to the bottom requires the participation of governments , trade unions and labor advocates

Factors such as lower costs , taxes and labor welfare all contribute to the happening of this race to the bottom

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