<Table> <Tr> <Td> </Td> <Td> The examples and perspective in this article may not include all significant viewpoints . Please improve the article or discuss the issue . (June 2017) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> The examples and perspective in this article may not include all significant viewpoints . Please improve the article or discuss the issue . (June 2017) (Learn how and when to remove this template message) </Td> </Tr> <P> The race to the bottom is a socio - economic phrase which is used to describe government deregulation of the business environment, or reduction in tax rates, in order to attract or retain economic activity in their jurisdictions . An outcome of globalization and free trade, the phenomenon may occur when competition increases between geographic areas over a particular sector of trade and production . </P> <P> The concept of a regulatory "race to the bottom" emerged in the United States during the late 19th and early 20th century, when there was charter competition among states to attract corporations to domicile in their jurisdiction . Some described the concept as the "race to efficiency", and others, such as Justice Louis Brandeis, as the "race to the bottom". </P>

He term race to the bottom refers to