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): Correct. The World Trade Organisation (WTO) has been criticized for perpetuating global inequality. By promoting trade rules that favor wealthier nations, the WTO is seen by many as widening the gap between rich and poor nations. Wealthier countries benefit more from these trade agreements, making it harder for developing nations to compete and grow economically.
- Reason (R): Correct. The reason for the widening gulf is that powerful nations within the WTO, such as the United States and the European Union, often push for trade agreements that benefit their own economic interests, often at the expense of poorer nations. These nations focus on policies that enhance their own commercial activities, such as lowering tariffs and opening new markets, but these policies are often not favorable to the developing world.
Thus, both Assertion (A) and Reason (R) are correct, and Reason (R) correctly explains Assertion (A).