Q2 of 8 Page 130

How would flexibility in labor laws help companies?

companies are the backbone of the economy. Their productions are imported and exported worldwide which boosts the economy.

The government brings flexibility in the labor laws to help companies in making profits.


1. Socioeconomic Zones are one such flexibility. These are the regions where the companies are freed from paying taxes if they set up a production unit in these areas.


2. The government eased the law of hiring workmen. The companies are allowed to hire people for short periods. This is done to reduce the cost of labor for the company.


More from this chapter

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1

What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

 3

What are the various ways in which MNCs set up or control production in other countries? Why do developed countries want developing countries to liberalize their trade and investment you think should the developing countries demand in return?

 4

Why do developed countries want developing countries to liberalize their trade and investment? What do you think should the developing countries demand in return?

 5

“The impact of globalization has not been uniform.” Explain this statement.