What does the term 'race to the bottom' indicate?

The term 'race to the bottom' refers to a situation where businesses or jurisdictions compete to lower their standards, particularly in terms of labor rights, wages, and environmental protections, in order to attract investment or jobs. In this context, the correct answer highlights how workers often find themselves in a position where they must accept lower wages to secure employment. This is influenced by the competitive nature of global markets, where companies may relocate to areas with cheaper labor costs, forcing workers to concede to diminished pay and poor working conditions in their bids for jobs.

The other options do not accurately reflect the essence of the term. For example, an increase in wages would be contrary to the concept of a 'race to the bottom,' as it suggests an upward trend rather than a downward one related to job security. Similarly, if corporations focus on employee training or ethical labor practices, they would be elevating standards rather than participating in a race to lower them. The phrase highlights the precarious situation many workers face in a competitive economic landscape, making acceptance of lower wages a stark reality rather than an opportunity for advancement.