In this video, you'll learn what the phrase "race to the bottom" means. The race to the bottom refers to a competitive situation where a company, state, or nation attempts to undercut the competition's prices by sacrificing quality standards or worker safety or reducing labor costs. Often used within the context of grabbing market share or in labor markets, a race to the bottom can have a negative impact on those competing. A race to the bottom can also occur among regions, where a jurisdiction relaxes regulations or cuts taxes in an attempt to attract investment. For more on the definition of race to the bottom, watch this video.