Question

Two statements are given below. They are Assertion (A) and Reason (R).
Read both the statements carefully and choose the correct option:
Assertion (A): Countries need to be cautious about dumped goods under free trade.
Reason (R): Dumping of goods can harm the domestic producers.

• A. (A) is true, but (R) is false.
• B. (A) is false, but (R) is true.
• C. Both (A) and (R) are true, but (R) is \textit{not} the correct explanation of (A).
• D. Both (A) and (R) are true and (R) is the correct explanation of (A). \vspace{0.5cm}

Hint:

Anti-dumping measures are implemented to protect domestic industries from unfair trade practices.

Answer 1

The Correct Option is D

Dumping is defined as exporting goods at prices below their domestic market value. This practice poses a threat to domestic industries by enabling foreign competitors to sell products more cheaply, potentially causing economic disruption. Therefore, both assertions are accurate, and reason (R) accurately clarifies statement (A).