Question

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

Accepted Answer

Competition has affected the workers, Indian exporters, and foreign MNCs in the garment industry in the following manner:

a) Workers are hired on a temporary basis so that the companies don't have to pay them for a whole year. Workers also have to put in long working hours during the peak season. They are forced to work overtime and the wages are low. They are also denied their fair share of profit.

b) Indian garment exporters cut their costs to get these large orders. The MNCs are making a good profit due to competition among garment exporters.

c) MNCs in the garment industry of Europe and America get their products from Indian exporters. MNCs have a worldwide network; they look for the cheapest goods in the market to maximise their profit share.

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