Final answer:
The 'race to the bottom' refers to countries lowering environmental standards to attract multinational corporations, leading to global environmental degradation as firms move to countries with the weakest regulations.
Step-by-step explanation:
International openness can lead to a "race to the bottom" in terms of environmental standards as multinational companies may shift production to countries with weaker environmental regulations. This move allows them to reduce costs and maximize profits. In response, countries might lower their standards to attract these companies, seeking the economic benefits of jobs and investment. This can result in a concentration of global production in locations with the most permissive pollution policies, leading to overall environmental degradation as countries compete to offer the least restrictive operational environments for business.