What compels states to engage in the race to the bottom? a. As ...

[Wadzanai]

What compels states to engage in the race to the bottom?
 
  a. As debt forgiveness is only available to states in hopeless international debt situations, states that want to default on their debts are given an incentive to put themselves in the worst possible financial shape.
  b. There is a limited amount of the developed world's resources devoted to foreign aid, and aid donors only give to the neediest states, so there is an incentive for states seeking aid to appear as poor as possible.
  c. States have a desire to attract or maintain the presence of large corporations.
  d. Elites in the less developed world tend to invest in instruments of force to maintain control in the short run instead of developing their economy to help foster long-term stability.
  e. States attempt to comply with mandates of the IMF to meet eligibility requirements for new loans.

Question 2

Weak states theories argue that
 
  a. countries would develop faster if governments acted weakly and did not intervene in the economy and let market forces work naturally.
  b. even with increasing globalization, governments have maintained, and perhaps even enhanced, their ability to tax, spend, and regulate.
  c. globalization limits the ability of governments to tax, spend, and regulate.
  d. to promote development, states should provide subsidies to key domestic industries and pursue protectionist trade policies.
  e. lesser developed countries cannot follow the development model provided by economically developed countries, because international capitalism has made the lesser developed countries dependent upon the economically developed countries.

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Answer to Question 1

C

Answer to Question 2

C