Social Science (087) — AI-generated practice question

MNCs seek cheap production locations to maximise profits. They place large orders with exporters in developing countries, forcing exporters to compete fiercely by cutting costs. Since raw material costs cannot be reduced easily, exporters cut labour costs instead.

This leads to:

• Workers employed on temporary basis instead of permanent, losing job security.
• Workers forced into long working hours and night shifts.
• Low wages, no health insurance or provident fund benefits.

Thus, MNCs gain higher profits and consumers get cheaper goods, but workers bear the burden through insecure, poorly paid employment — denied their fair share of globalisation's benefits.

Source: Chapter 4 — Competition and Uncertain Employment

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Examiners look for the chain of causation: MNCs seek cheap production → exporters compete → labour costs cut → job insecurity and poor conditions. Mention at least 2–3 specific consequences for workers (temporary jobs, long hours, low wages, loss of benefits). The example of the garment industry or Sushila can be briefly referenced but keep it tight within the word limit.