Social Science (087) — AI-generated practice question

In labour-intensive industries like garments, raw material costs are fixed and cannot be easily reduced. So, to offer the lowest prices and win large MNC orders, exporters cut labour costs instead — by hiring workers on temporary contracts, paying low wages, and making them work long hours without overtime benefits.

This reveals that workers have very little bargaining power in a globalised economy. Facing competition from exporters worldwide, workers are forced to accept insecure jobs and poor conditions. As seen in Sushila's case, even experienced workers lose permanent status and benefits. MNCs gain large profits while workers bear the costs of competition.

Source: Chapter 4 — Competition and Uncertain Employment

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• The examiner expects two clear parts: (1) why labour costs are targeted, and (2) what this says about workers' bargaining power.
• Use evidence from the passage — Sushila's example or the garment export situation — to support your answer. This shows you can apply textbook content.
• Key terms to include: temporary employment, flexible labour, bargaining power, MNC profits.
• Avoid padding; 3 marks = roughly 3 key points made crisply.