Question

In the question given below, there are two statements marked as Assertion (A) and

Reason (R). Read the statements and choose the correct option:

Assertion (A): Foreign trade results in connecting the market or integration of markets

in different countries.Reason (R): Foreign trade has been the main channel connecting countries.

Options:

a) Both A and R are true and R is the correct explanation of A.

b) Both A and R are true but R is not the correct explanation of A.

c) A is correct but R is wrong.

d) A is wrong but R is correct. ​

Answer 1

Answer:

both A and R are true but R is not the correct explaination of A

Answer 2

Answer:

The correct option is -

b) Both A and R are true but R is not the correct explanation of A.

Explanation:

Foreign trade integrates the market in different countries because -

• Foreign trade creates an opportunity for producers to go beyond national markets.
• Manufacturers can not only sell their products in markets within the country, but also compete in markets in other countries around the world.
• Similarly, importing goods made in another country is a way for the buyer to expand the choice of goods beyond what is made in the country.
• Increases the selection of goods in the markets.
• The prices of similar goods in the two markets tend to converge.
• Producers from both countries are now in close competition with each other.

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