With reference to the impact of globalisation on workers, consider the following statements: 1. Due to intense competition, most employers now prefer to employ workers flexibly rather than on a permanent basis. 2. Workers in the manufacturing sector have uniformly received the largest share of benefits from globalisation. 3. In industries like garments, workers often have to put in long working hours and work night shifts during peak seasons. Which of the statements given above is/are correct?

The correct option is 1 and 3 only. Explanation Globalization has integrated domestic economies with the world market, leading to intense competition among producers. To remain competitive, firms often adopt cost-cutting measures, significantly impacting labour markets. This has resulted in a shift towards "labour flexibility," where the traditional security of permanent employment is often replaced by temporary or casual arrangements. Statement-wise Analysis - Statement 1 is Correct: Due to intense competition brought about by globalization, employers seek to minimize costs and maximize adaptability to fluctuating market demand. Consequently, most employers prefer to employ workers "flexibly" (on short-term contracts or casual basis) rather than on a permanent basis. This allows firms to hire and fire based on immediate requirements, reducing the burden of providing social security benefits associated with permanent jobs. - Statement 2 is Incorrect: The benefits of globalization have not been distributed uniformly. While consumers have benefited from lower prices and greater choices, and large multinational corporations have maximized profits, workers-particularly in the manufacturing sector-have not uniformly received the largest share of benefits. In many cases, real wages have stagnated, and job security has declined due to the shift towards flexible employment. - Statement 3 is Correct: In export-oriented industries like garments, producers face pressure from large multinational buyers to deliver products quickly and cheaply. To meet strict deadlines and seasonal peaks, workers are often required to put in very long working hours and work night shifts. This is a common characteristic of supply chains in globalized industries. Key Takeaway: Globalization has led to the "informalization" of the workforce within the organized sector, characterized by a shift from permanent tenure to flexible employment to reduce production costs.

NCERT Class 10 Economics — Chapter 4: Globalisation and the Indian Economy

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With reference to the impact of globalisation on workers, consider the following statements:

Due to intense competition, most employers now prefer to employ workers flexibly rather than on a permanent basis.
Workers in the manufacturing sector have uniformly received the largest share of benefits from globalisation.
In industries like garments, workers often have to put in long working hours and work night shifts during peak seasons.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 3 only
B1 and 2 only
C2 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is 1 and 3 only.

Explanation

Globalization has integrated domestic economies with the world market, leading to intense competition among producers. To remain competitive, firms often adopt cost-cutting measures, significantly impacting labour markets. This has resulted in a shift towards "labour flexibility," where the traditional security of permanent employment is often replaced by temporary or casual arrangements.

Statement-wise Analysis

Statement 1 is Correct: Due to intense competition brought about by globalization, employers seek to minimize costs and maximize adaptability to fluctuating market demand. Consequently, most employers prefer to employ workers "flexibly" (on short-term contracts or casual basis) rather than on a permanent basis. This allows firms to hire and fire based on immediate requirements, reducing the burden of providing social security benefits associated with permanent jobs.
Statement 2 is Incorrect: The benefits of globalization have not been distributed uniformly. While consumers have benefited from lower prices and greater choices, and large multinational corporations have maximized profits, workers-particularly in the manufacturing sector-have not uniformly received the largest share of benefits. In many cases, real wages have stagnated, and job security has declined due to the shift towards flexible employment.
Statement 3 is Correct: In export-oriented industries like garments, producers face pressure from large multinational buyers to deliver products quickly and cheaply. To meet strict deadlines and seasonal peaks, workers are often required to put in very long working hours and work night shifts. This is a common characteristic of supply chains in globalized industries.

Key Takeaway: Globalization has led to the "informalization" of the workforce within the organized sector, characterized by a shift from permanent tenure to flexible employment to reduce production costs.

Your note

More from Chapter 4: Globalisation and the Indian Economy

The term "Containerisation" in the context of globalisation has primarily led to: 1. Huge reduction in port handling costs. 2. Increased time required for the delivery of goods to export markets. 3. Ability to load goods intact onto ships, railways, planes, and trucks. Which of the statements given above is/are correct?

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Which international organisation is primarily mandated to establish rules regarding global trade and ensure their compliance?

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The rapid improvement in which of the following has been the major factor stimulating the globalisation process?

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Which one of the following is NOT a primary factor considered by Multinational Corporations (MNCs) when establishing production units in a country?

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In the context of globalisation in India, which one of the following industries has generally remained resilient compared to others where small manufacturers faced stiff competition?

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The correct option is 1 and 3 only.

Explanation

Statement-wise Analysis

Statement 1 is Correct: Due to intense competition brought about by globalization, employers seek to minimize costs and maximize adaptability to fluctuating market demand. Consequently, most employers prefer to employ workers "flexibly" (on short-term contracts or casual basis) rather than on a permanent basis. This allows firms to hire and fire based on immediate requirements, reducing the burden of providing social security benefits associated with permanent jobs.
Statement 2 is Incorrect: The benefits of globalization have not been distributed uniformly. While consumers have benefited from lower prices and greater choices, and large multinational corporations have maximized profits, workers-particularly in the manufacturing sector-have not uniformly received the largest share of benefits. In many cases, real wages have stagnated, and job security has declined due to the shift towards flexible employment.
Statement 3 is Correct: In export-oriented industries like garments, producers face pressure from large multinational buyers to deliver products quickly and cheaply. To meet strict deadlines and seasonal peaks, workers are often required to put in very long working hours and work night shifts. This is a common characteristic of supply chains in globalized industries.