Question

The policy followed by some MNCs where workers in one country are informed that they cannot have the improved employment conditions they seek because they are less productive than employees in another country is called:

a. Globalization.
b. Unionization.
c. Divide and rule.
d. Whipsawing.
e. Wage system.

Answer 1

The term referring to the practice used by some MNCs to inform workers that they cannot have improved employment conditions is called whipsawing. Option d is correct.

Step-by-step explanation:

The policy used by some multinational corporations (MNCs) to discourage workers in one country from demanding improved employment conditions by comparing them unfavorably with workers in another country is known as d. Whipsawing.

This practice leverages differences in productivity, cost, and other factors across countries where an MNC operates to play one group of workers against another. It puts pressure on employees to accept lower wages or poorer conditions by presenting them as necessary to remain competitive globally.

Globalization has led to outsourcing and the movement of jobs to locations with cheaper labor, causing unemployment and support for globalization to weaken in developed countries. Workers find themselves competing in an international division of labor, which can lead to xenophobia and other social tensions.