Question

Two statements are given below. They are Assertion and Reason (R).
Read both the statements carefully and choose the correct option :
Assertion : ‘World Trade Organisation (WTO) is widening the gulf between rich and poor by making rich countries richer.’
Reason (R) : ‘The influential nations in the WTO focus on their own commercial interests.’

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A).
• B. Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
• C. (A) is correct, but (R) is incorrect.
• D. (A) is incorrect but (R) is correct.

Hint:

When studying international organizations like the WTO, focus on understanding the power dynamics and how they affect the global economy, especially the imbalance between rich and poor nations.

Answer 1

The Correct Option is A

- Assertion (A): Verified. The World Trade Organisation (WTO) faces criticism for exacerbating global inequality. Its trade rules are perceived by many as favoring developed nations, thereby increasing the disparity between affluent and impoverished countries. Wealthier nations gain more from these trade accords, impeding the economic development and competitiveness of developing nations.
- Reason (R): Verified. This disparity arises because influential WTO members, including the United States and the European Union, advocate for trade agreements that serve their economic interests, often to the detriment of less developed nations. These nations prioritize policies that boost their own commerce, such as tariff reductions and market access, measures frequently disadvantageous to the developing world.
Consequently, both Assertion (A) and Reason (R) are accurate, and Reason (R) provides a valid explanation for Assertion (A).