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Q.

In what way did the pressure of competition affect the workers in the garment industry?


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a

Reduced cost of raw material

b

Reduced labour cost

c

Decreased working hours

d

Protection of workers 

answer is B.

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Detailed Solution

By Reducing labour costs, the pressure of competition affects the workers in the garment industry.
Large MNCs in Europe and America prefer getting raw materials from Indian exporters. Exporters always seek to reduce the price of raw materials for their profits. As the cost of raw materials cannot be reduced after a specific limit, these exporters prefer to minimise the labour price by reducing their wages. Many industries have now started appointing workers temporarily rather than permanent ones so that they do not have to pay more for the workers. In addition, workers have to work for long durations and are sometimes forced to be active on their night shifts.
 
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