Question:

In the following question, a statement of Assertion is followed by a statement of Reason (R). Choose the correct option as the answer.
Assertion (A): The entry and the increased role of multinational companies all over the world leads to a reduction in the capacity of governments to take decisions on their own.
Reason (R): The state continues to discharge its essential functions and consciously withdraws from certain domains from which it wishes to.

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When matching assertions with reasons, carefully analyze whether the reason logically explains the assertion or simply supports it.
Updated On: May 12, 2025
  • Both the Assertion (A) and the Reason (R) are correct and the Reason (R) is the correct explanation of the Assertion (A).
  • Both the Assertion (A) and the Reason (R) are correct, but the Reason (R) is not the correct explanation of the Assertion (A).
  • The Assertion (A) is incorrect, but the Reason (R) is correct.
  • The Assertion (A) is correct, but the Reason (R) is incorrect.
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The Correct Option is B

Solution and Explanation

- Assertion (A): This is correct because multinational companies often have a significant influence on global markets and economic decisions, which can limit the ability of individual governments to make independent economic decisions.
- Reason (R): This is also correct because, in the era of globalization, states often continue to manage their essential functions but also choose to withdraw or delegate certain responsibilities to the private sector or international organizations in areas such as trade or environmental policy.
However, the reason (R) does not fully explain the assertion (A) because the assertion primarily addresses the influence of multinational companies, while the reason speaks more about the broader trend of state withdrawal from various functions.
Thus, the correct answer is (B) Both the Assertion (A) and the Reason (R) are correct, but the Reason (R) is not the correct explanation of the Assertion (A).
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