Question

Answer the following question in 80 to 100 words:

Explain with examples impact of transnational companies on common people in India.

Answer 1

Transnational corporations such as Nestlé and Unilever are actively operating in India, and their influence on the economy can be seen in various areas:

1. Labour Market: These multinational companies hire both skilled and semi-skilled workers. Indian labour is employed in various parts of the world, including West Asia, Europe, and the USA, particularly in the industrial and service sectors.
2. Small Shops and Industries: Efficient local enterprises manage to survive and compete, while others either merge with transnational corporations or are forced to shut down due to competitive pressures.
3. Agriculture sector: Transnational companies have introduced modern technologies in farming and have created direct access to global markets for Indian agricultural products. For example, India now exports goods like spices and grains to several countries.