Question

1. How would flexibility in labour laws help companies?

1. The flexibility in labour laws helps the companies is getting employees who are willing to work at lower

wages.

2. The flexibility will help companies to get indentured laborers.

3. An indentured labourer is a bonded labourer under contract to work for an employer for a specific

amount of time to pay of his passage to a new country or home. Living and working conditions for such

labourers were often harsh and they hardly have any legal rights.

4. Hence, the flexibility in labour laws only helps the companies but not the labourers.

Q2.What are the different ways in which MNCs setup, or control production in other countries?

1. MNCs are playing a major role is the globalisation process.

2. The criteria for selecting a site for operations of MNCs area) Proximately to the markets

b) Availability of skilled and unskilled labour at low costs

c) Assured availability of other factors of production

d) Governments that can protect their interests

3. MNC investments are used to buy up local companies and then to expand production

4. Large MNCs in developed countries place orders for production with small producers and sell them

under their own brand names.

5. Large MNCs have tremendous power to determine price, quality, terms of delivery and labour conditions

of these distance producers.

Q3. Why do developed countries want developing countries to liberalise their trade and investment?

Why do you think should the developing countries demand in turn?

1. Developed countries want to turn the developing countries as their markets. That’s why they urge

developing countries to reduce taxes on imports.

2. Developing countries can demand the developed countries to give job opportunities to their people.

3. The developing countries are in turn may ask the developed countries the gas and the natural fuels at

lower cost.

Q4. How has liberalisation of trade and investment policies helped the process of globalisation?

1. Removing barriers or restrictions set by the government on businesses is known is liberalisation.

2. The investments of MNCs directly promote the globalisation process.

3. Collaboration of MNCs with local countries helps the globalisation process.

4. Setting up of special economic zones by the central and state governments to attract foreign companies

to invest in India.​

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