Question:medium

Two statements labelled as Assertion (A) and Reason (R) are given below. Read both the statements carefully and choose the correct option:

Assertion (A): Foreign trade provides producers with opportunity to reach beyond domestic markets.
Reason (R): The foreign trade expands the choice of goods other than those produced domestically.

Show Hint

Ask who each sentence is about. One talks about sellers reaching new markets and the other about buyers getting more choice. Two different parties means no explanatory link.
Updated On: Sep 15, 2026
  • Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  • Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  • Assertion (A) is true, but Reason (R) is false.
  • Assertion (A) is false, but Reason (R) is true.
Show Solution

The Correct Option is B

Solution and Explanation

Concept:
  • A quick way to test whether a reason explains an assertion is to ask who each sentence is talking about.
  • If the two sentences describe different people, one cannot be the cause of the other.

Step 1: Identify the subject of the Assertion.
It speaks about producers and the markets they can reach. Foreign trade lets a manufacturer in one country sell to customers in another, which is accurate.

Step 2: Identify the subject of the Reason.
It speaks about the range of goods available, which is a benefit felt by buyers. Imports let a consumer buy things that are not made at home, which is also accurate.

Step 3: Apply the who-test.
One sentence is about sellers and the other about buyers. They are two parallel effects of foreign trade, and neither causes the other. So the Reason cannot be the explanation of the Assertion.

Step 4: Eliminate the wrong options.
Options (C) and (D) each declare one statement false, but both are true, so both fail. Option (A) claims an explanatory link that does not exist. Option (B) is left.

Step 5: Note the wider effect.
With foreign trade, markets of two countries become connected. Producers of the two countries begin to compete with each other even though they are far apart, and prices of similar goods in the two markets tend to become equal.

Final Answer: (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
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