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Question
Assertion (A): ‘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.’
Options
Both (A) and (R) are correct and (R) is the correct explanation of (A).
Both (A) and (R) are correct, but (R) is not the correct explanation of (A).
(A) is correct, but (R) is incorrect.
(A) is incorrect but (R) is correct.
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Solution
Both (A) and (R) are correct and (R) is the correct explanation of (A).
Explanation:
The WTO has faced criticism for increasing the economic divide between wealthy and poorer countries. This is because powerful nations often promote policies that favour developed economies over developing ones. As a result, free trade does not always bring benefits to common people and may instead strengthen existing economic inequalities.
