ABSTRACT
The effects of internationalization on domestic regulatory standards in fields such as environmental policy and consumer protection have been the subject of intense debate. On the one hand, it is often feared that internationalization will lead to a steady reduction in the stringency of regulatory standards. Then, it is argued that relatively stringent standards lead to higher costs of production in the countries imposing them, which in turn worsens their competitive position in world markets. As a result, countries will lower their standards in order to retain business or even to attract it, and a ‘race to the bottom’ may result.
