Business Environment, 4th Edition by Pearson

432 | Chapter 15

and destroying their environment and, for abusing their economic power by engag-

ing the developing countries in a so-called ‘race to the bottom’. This term describes

a process whereby the MNCs pitch the developing countries against each other by

allocating foreign direct investment (FDI) to those countries that can oar them the

most favourable conditions in terms of low tax rates, low levels of environmental

regulation, and restricted workers’ rights. However true these accusations are in

practice, there is no doubt that globalisation is the most current and demanding

arena in which corporations have to define and legitimate ...