The correct option is 2 and 3 only.
Explanation
The garment industry example illustrates unequal power relations in global production networks, where large multinational corporations (MNCs) exercise significant control over pricing, quality, and delivery terms, affecting labour conditions in exporting countries.
Statement-wise Analysis:
- Statement 1 - Incorrect. Small Indian garment exporters do not dictate terms to large European MNCs; rather, MNCs possess greater bargaining power and impose strict conditions on suppliers.
- Statement 2 - Correct. To remain competitive under price pressure from MNCs, Indian exporters often reduce labour costs through lower wages, contractual employment, or cost-cutting measures affecting workers.
- Statement 3 - Correct. Workers frequently work overtime to supplement low wages in order to meet basic living expenses.
Key Takeaway: In global garment supply chains, cost pressures imposed by MNCs are transmitted to workers through wage suppression and extended working hours, reflecting unequal power relations.