What do small companies do to compete for orders from the big companies?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → They provide poor working conditions to their labourers to cut costs.
Option (3) They provide poor working conditions to their labourers to cut costs. — Correct. Big companies outsource their work to smaller companies or even to homes. Because small companies have to compete for orders from the big companies, they keep wages low, and working conditions are often poor; it is also harder for trade unions to organise in such small firms.
NCERT (2025-26): “Globalisation, Liberalisation and Changes in Indian Industry … More and more companies are reducing the number of permanent employees and outsourcing their work to smaller companies or even to homes. For multinational companies, this outsourcing is done across the globe, with developing countries like India providing cheap labour. Because small companies have to compete for orders from the big companies, they keep wages low, and working conditions are often poor. It is more difficult for trade unions to organise in smaller firms. Almost all companies, even government ones, now practice some form of outsourcing and contracting. But the trend is especially visible in the private sector.…” |