Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements carefully and choose the correct option:
Assertion (A): All the developed countries have opened their markets for products from developing countries.
Reason (R): World Trade Organisation deals with the global rules of trade between nations.
Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements carefully and choose the correct option:
Assertion (A): All the developed countries have opened their markets for products from developing countries.
Reason (R): World Trade Organisation deals with the global rules of trade between nations.
Options
Correct option: D — Assertion is false (developed countries still restrict market access through tariffs, quotas and subsidies), while the Reason is true (WTO does lay down global trade rules).
Marking Scheme
- 11 mark: selecting option D — (A) is false but (R) is true.
Hint
WTO sets global trade rules (R is true), but real-world developed-country protectionism means (A) is false.
Quick Oral Answer
The WTO does set global trade rules, but developed countries have not fully opened their markets — tariffs, quotas and subsidies still restrict developing-country exports, so the Assertion is false while the Reason is true.
Analysis & Explanation
This assertion-reason question tests understanding of the World Trade Organisation (WTO) and the reality of global trade barriers.
Assessing the Assertion (A)
- It is false: developed countries continue to protect their markets through tariffs, quotas and, especially, heavy agricultural subsidies, which restrict genuine market access for developing-country exports despite WTO commitments.
Assessing the Reason (R)
- It is true: the WTO, established in 1995, is the international body that lays down and monitors the global rules governing trade between nations.
Why Option D is correct
- Since (A) is false and (R) is true, only Option D fits; Options A and B wrongly treat (A) as true, and Option C wrongly treats (R) as false.
Common Mistakes
- 1Assuming developed countries have genuinely opened their markets simply because the WTO promotes free trade — actual practice includes tariffs, quotas and subsidies that restrict access.
- 2Treating the Reason as false because the Assertion is false — the two statements must be evaluated independently before checking the explanation link.
Interesting Facts
The WTO was established on 1 January 1995, replacing the earlier General Agreement on Tariffs and Trade (GATT) framework set up in 1948.
Agricultural subsidies in developed countries have long been a major sticking point in WTO negotiations, as they make developed-country farm produce artificially cheap and harder for developing-country farmers to compete against.
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Frequently Asked Questions
Have developed countries fully opened their markets to developing countries?
No. Despite WTO commitments to free trade, developed countries continue to use tariffs, quotas and subsidies (especially in agriculture) that restrict full market access for developing-country products.
What does the WTO do?
The World Trade Organisation, established in 1995, lays down and monitors the global rules of trade between nations, aiming to ensure trade flows smoothly, predictably and freely.