Question

Company M manufactures an insecticide product that is in high demand from farmers, but it contains chemicals that have been proven to be hazardous to humans who have a particular sensitivity to it. When a company decides to pursue profits over product safety, this is an example of a tendency encouraged by ______.

a) the product treadmill
b) capitalism
c) global economics
d) manufacturing transition

Answer 1

This behavior is encouraged by capitalism, where companies prioritize profit over safety, resulting in environmental degradation and potential hazards to humans. It exemplifies the complex dynamics of globalization and international trade.

Step-by-step explanation:

When a company prioritizes profits over product safety, ignoring potential hazards to humans, this behavior is a tendency encouraged by capitalism. Despite the potential for maximizing profits, such decisions can lead to detrimental impacts on human health and the environment. Multinational companies sometimes relocate production to countries with weak environmental regulations—contributing to global environmental degradation and labor concerns.

In the context of international trade and globalization, this profit-focused behavior may reduce costs for businesses, but it can also prompt countries to lower their environmental standards, thus creating a 'race to the bottom' scenario. The demand and supply model in international trade highlights these dynamics and the conflicting interests between corporate profits, public safety, environmental protection, and national security.