Hot topic in group dicussion :Total liberalization is the only way for economic development in India Total liberalization is often referred to as the ‘total trade liberalization’ which means after deductions profits by allowing an upsurge in voluntary trading. For: - Trade liberalization will assist in aligning the wage rates between countries and will also help in reducing discrimination of wages in the country - The resources are available in copiousness and trade leads to a intensification in return to capital and waning wages which has been proved in the developed countries and hence we should give it a try in the developing countries as well - Trade helps in reduction on poverty as it gives new opportunities even to the unskilled labour Against: - Trade liberalization will increase wages especially of small scale industries as exports involve a lot of cost and in turn would be expensive for the small scale industries and hence will imbalance the economic development in India - There has always disparity seen between trade and wages, which cannot be changed and ignored as well - Most of the labour is betrothed in the agricultural sector and hence lack the skills to be hired in organised industry sectors where they can be offered better pay - It increases wages inequality as skilled labour will be paid more whereas a person doing the same work but is unskilled will be paid less. Conclusion: - Liberalization would be beneficial but certain necessary changes should be made and then implemented as it would help in eradicating the wage inequality
Posted on: Sat, 01 Feb 2014 06:36:54 +0000
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