In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?

cbse
economics
globalisation-indian
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#1

In what ways has competition affected workers, Indian exporters and foreign MNCs in the garment industry?

Answer:

  • Large MNCs in the garment industry in Europe and America get their products from Indian exporters.
  • These large MNCs with worldwide network look for the cheapest goods in order to maximise their profits.
  • To get these large orders, Indian garment exporters try hard to cut their own costs.
  • Earlier, a factory used to employ workers on permanent basis. Now they employ workers only on a temporary basis, so that they do not have to pay workers for the whole year.
  • Workers also have to put in very long working hours. They have to work in night shifts on a regular basis during the peak season.
  • Wages are low and workers are forced to work overtime to make both ends meet.
  • While this competition among the garment exporters has allowed the MNCs to make large profits, workers are denied their fair share of benefits brought about by globalisation.