Practicing Success
Practicing Success
CUET Preparation Today
| Economists and others often make a distinction between the organised or formal and the unorganised or informal sector. There is a debate over how to define these sectors. According to one definition, the organised sector consists of all units employing ten or more people throughout the year. These have to be registered with the government to ensure that their employees get proper salaries or wages, pension and other benefits. |
| The passage describes the organized sector, select a statement which describes the relationship between globalization and the organized sector. |
Globalization came with two trends which negatively affected the organized sector in the home country by way of contractual labour and outsourcing . Globalization strengthened the organized sector and converted a significant section of the population into labourers in the organized sector. Globalization created more state-sponsored jobs in organized labour. Globalization didn't influence the employment sector at all, the organized sector remained unaffected. |
| Globalization came with two trends which negatively affected the organized sector in the home country by way of contractual labour and outsourcing . |
| 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. |
