Social Studies High School

Zenon Enterprise, a company that makes sports attire, currently receives its clothing from a small, poor country in Asia whose workers work for $4 per day. However, the company is always looking for cheaper labor all around the world. If it can find a country where it can get labor for less, it plans to close the plant in Asia and move to where the labor is cheapest. What term best describes this policy.A. "Race to the bottom" policyB. "Exploitation of the hungry" PolicyC. "business is business" policyD. "hungry masses" policy

Answers

Answer 1

The term that best describes Zenon Enterprise's policy of constantly looking for cheaper labor and potentially closing the plant in Asia to move to where labor is cheapest is "Race to the bottom" policy. Therefore, the correct option is A.

"Race to the bottom" policy is term refers to a situation where companies compete by continually lowering their standards, such as labor costs, to gain a competitive advantage in the market. It refers to a situation where companies compete with each other to lower their costs and increase profits by finding the cheapest labor and materials possible.

This often leads to a downward spiral where workers are paid very low wages and have poor working conditions, as companies move from one country to another in search of cheaper labor. This policy is criticized for its negative impact on workers and the communities where they live.

In this case, Zenon Enterprise is participating in a "race to the bottom" by prioritizing lower labor costs above other considerations, such as workers' well-being. Hence, the correct answer is option A: "Race to the bottom" policy.

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