Bachelor of General Studies (BGS) Degree Practice Exam

A critic of globalization might claim that companies choose to manufacture in China largely due to what factor?

1. Access to skilled labor

2. Weak health and safety regulations

3. High technological advancements

4. Low tariffs on imports

The correct answer is: Weak health and safety regulations

Manufacturing in China has been a significant trend for many companies, and a critic of globalization would argue that one major factor for this choice is the presence of weak health and safety regulations. This perspective highlights that companies often seek environments where regulatory oversight is less stringent, allowing them to reduce costs associated with compliance and liability. In markets with lax regulations, firms might not be held to the same standards as in other regions, enabling them to operate with fewer constraints. This can lead to lower operational expenses and higher profit margins, making such locations more attractive for manufacturing, despite potential ethical concerns regarding labor conditions and environmental impacts. The other factors provided in the options, such as access to skilled labor, technological advancements, and low tariffs, may contribute to manufacturing decisions but do not address the critical viewpoint on the negative consequences of globalization as holistically as the issue of weak health and safety regulations. Critics focus on regulatory aspects because they often point to exploitation and risks to worker safety that arise in such manufacturing environments.