BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Forcing foreign companies to leave India.
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Forcing business units to move out of congested localities.
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Allowing manufactures to shift their line products.
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Allowing business units to close down.
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Detailed explanation-1: -It refers to the right or ability of an industrial unit to withdraw from or leave an industry or in other words to close down. The proposal to introduce an exit policy was first mooted in 1991 when it was felt that without labor market flexibility, efficient industrialization would be difficult to achieve.
Detailed explanation-2: -Noun. exit policy (plural exit policies) A plan or strategy that would enable a project to be halted or completed in an effective manner.
Detailed explanation-3: -Exit policy means the policy regarding the retrenchment of the surplus labour force resulting from restructuring of industrial units and workers displaced by the closure of sick units. Exit may become necessary due to strategic reasons, financial constraints and environmental changes.
Detailed explanation-4: -An exit policy will ensure that the legitimate dues of displaced workers are paid to them speedily and satisfactorily. Without such a policy, these workers have to lose their dues. Closure of sick units may cause temporary unemployment. But the investment made out of the sale proceeds would create permanent employment.