Given below are two statements:
Statement I: For multinational companies, outsourcing is done across the globe, with developing countries like India providing cheap labour.
Statement II: It is easier for trade unions to organise in smaller firms.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect
Statement I: For multinational companies, outsourcing is done across the globe, with developing countries like India providing cheap labour. — Correct. Multinational companies outsource their work across the globe. Developing countries like India supply the cheap labour for it.
Statement II: It is easier for trade unions to organise in smaller firms. — Incorrect. Trade unions find it more difficult to organise in smaller firms. Small firms compete for orders from big companies, so wages stay low and working conditions are often poor.
NCERT (2026-27): “Globalisation, Liberalisation and Changes in Indian Industry … |