How would flexibility in labour laws help companies?
Flexibility in labour laws help companies by reducing the cost of labour ,which in turn will help the company to bring down the cost of its product and the company will be in a position to compete in the global market.
Government has also allowed flexibility in the labour laws to attract foreign investment. Companies in the organised sector have to obey certain rules that aim to protect the workers' rights. In the recent years, the government has allowed companies to ignore many of these rules. Instead of hiring workers on a regular , permanent basis, companies hire workers ‘flexibly' for short periods when there is intense pressure of work. This helps reduce the cost of labour for the company.
What are the various ways in which MNCs set up, or control, production in other countries?
How has liberalisation of trade and investment policies helped the globalisation process?
What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.