Q1. [3] medium thorough-understanding
A garment worker employed permanently in a factory in the 1990s enjoyed health insurance, provident fund, and double-rate overtime pay. By the 2000s, a worker doing the same job in a similar factory is hired on a temporary basis with none of these benefits. Using your understanding of how globalisation affects employment, explain why this shift happened.
Generated by claude-sonnet-4-6 · 2026-06-26 13:28 · grounding rag
Model Answer
Globalisation increased competition among garment exporters, as large MNCs sought the cheapest goods to maximise their profits. To win these orders, Indian exporters cut labour costs. Instead of hiring permanent workers (who are entitled to health insurance, provident fund, and double-rate overtime), factories began employing workers on a temporary basis — avoiding year-round wage commitments and statutory benefits. This shift to "flexible" employment allowed exporters to reduce costs and stay competitive, but workers were denied their fair share of globalisation's benefits.
Source: Competition and Uncertain Employment, Chapter 4
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Explanation
- The core cause-and-effect chain examiners want: MNC pressure → exporters cut costs → labour made flexible → benefits removed.
- Use the textbook's own term "flexible" employment — it signals you've read the chapter.
- Mention at least two specific benefits lost (health insurance, provident fund, overtime) to show precision.
- Avoid vague statements like "globalisation is bad"; be specific about the mechanism (cost-cutting through temporary hiring).