Q1. [1] § FOREIGN TRADE AND INTEGRATION OF MARKETS § Liberalisation of foreign trade and foreign investment policy § IMPACT OF GLOBALISATION IN INDIA
⚠ Globalisation and the Indian Economy › FOREIGN TRADE AND INTEGRATION OF MARKETS — Internal project only — not in the Board exam (per CBSE 2026-27 curriculum)
Only 'What is Globalisation?' and 'Factors that have enabled Globalisation' are in the Board exam; the remaining sub-topics are the internally-assessed interdisciplinary project. [source: Course Structure — Economics, Chapter 4 (Subtopics evaluated in Board)]⚠ Globalisation and the Indian Economy › IMPACT OF GLOBALISATION IN INDIA — Internal project only — not in the Board exam (per CBSE 2026-27 curriculum)
Only 'What is Globalisation?' and 'Factors that have enabled Globalisation' are in the Board exam; the remaining sub-topics are the internally-assessed interdisciplinary project. [source: Course Structure — Economics, Chapter 4 (Subtopics evaluated in Board)]Two statements labelled as Assertion (A) and Reason (R) are given below. Read both the statements carefully and choose the correct option :
Assertion (A) : Foreign trade provides producers with opportunity to reach beyond domestic markets.
Reason (R) : The foreign trade expands the choice of goods other than those produced domestically.
- (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- (C) Assertion (A) is true, but Reason (R) is false.
- (D) Assertion (A) is false, but Reason (R) is true.
Previously asked in CBSE board exam
2026 32/3/1 Q29
Generated by claude-sonnet-4-6 · 2026-06-15 06:58 · grounding rag
Model Answer
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
Both statements are independently true facts about foreign trade, but expanding buyers' choice does not explain why producers can reach beyond domestic markets.
Explanation
- A is true: The textbook states "foreign trade creates an opportunity for the producers to reach beyond the domestic markets."
- R is true: The textbook also states "import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced."
- However, R talks about the buyer's side (choice of goods), while A talks about the producer's side (reaching new markets). R does not explain why A is true — they are two separate, parallel outcomes of foreign trade. Hence (B) is correct.
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