Unit 4 Ch 4 : Globalization and the Indian Economy — Social Studies STD 10 — Question

Flexibility in labour laws will help companies in being competitive and progressive. By easing up on labour laws, company heads can negotiate wages and terminate employment, depending on market conditions. This will lead to an increase in the company's competitiveness. Government has also allowed flexibility in the labour laws to attract foreign investment. This helps to reduce the cost of labour for the company.