Question

Read the following statements – Assertion (A) and Reason (R). Choose the correct option given below:
Assertion (A): World Trade Organization (WTO) is expected to establish the rule-based trading regime, to avoid unilaterally placed arbitrary restrictions by member nations.
Reason (R): It is imperative to enlarge world production and ensure optimum utilization of world resources along with environmental protection.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is \textit{not} the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

For assertion and reason questions, ensure the reason directly supports the assertion's main idea.

Answer 1

The Correct Option is A

- The WTO's main objective is to establish a global trading system governed by rules.
- This prevents member countries from implementing trade restrictions that are arbitrary or unilateral. 
- The stated justification supports this claim as the WTO aims to maximize global production, ensure efficient allocation of resources, and incorporate environmental considerations into trade accords.