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 refers to selling goods in a foreign market at prices lower than their domestic value. This practice can harm domestic producers by undercutting local businesses, leading to market disruption. Thus, both statements are true, and (R) provides the correct explanation for (A).