Companies often choose to build plants compliant with stricter environmental standards when they locate in low-income countries with lax environmental standards. This is because?

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26-07-2022
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Companies often choose to build plants compliant with stricter environmental standards when they locate in low-income countries with lax environmental standards. This is because?

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Tundexi Tundexi · Answer 1 · 2022-08-05T19:26:20+02:00

Companies will often choose to build plants compliant with stricter environmental standards because designing an industrial plant is a complex and costly task and so, if a plant works well in a high-income country, companies prefer to use the same design everywhere.

What is a stricter environmental standards?

This refers to the strict administrative regulations or civil law rules that are implemented for the treatment and maintenance of the environment in a country, state, region etc.

Most time, majority of companies will choose to build plants compliant with stricter environmental standards when they locate in low-income countries with lax environmental standard because the process of designing an industrial plant is a complex and costly task and so, if a plant works well in a high-income country, companies prefer to use the same design everywhere.

Read more about environmental standards

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okpalawalter8 okpalawalter8 · Answer 2 · 2022-08-05T19:36:00+02:00

Companies often choose to build plants compliant with stricter environmental standards when they locate in low-income countries with lax environmental standards. This is because designing an industrial plant is a complex and costly task, and so if a plant works well in a high-income country, companies prefer to use the same design everywhere

This is further explained below.

What are environmental standards?

Generally, The government is often the one that establishes environmental standards, and these standards might include the restriction of certain activities, the mandating of the frequency and means of monitoring, and the need for licenses for the use of land or water. Different types of environmental activities are subject to different sets of standards.

In conclusion, When relocating their operations to lower-income nations with more lenient environmental regulations, businesses often choose to construct factories that are compatible with stronger environmental requirements. This is due to the fact that the process of building an industrial plant is tough and costly. As a result, when a plant has proved that it is successful in a country that has a high quality of living, corporations often prefer to apply that plant's original design in other countries.