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UGC NET COMMERCE December 2018 Q45

0. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): The multilateral trading system is an attempt by governments to make the business environment stable and predictable.
Reason (R): Promising not to raise trade barriers can be as important as lowering one, because the promise gives businesses a clearer view of their future market opportunities.

  • Option : B
  • Explanation : Predictability and Stability: Predictability and stability are important objectives of the multilateral regulation of trade. The multilateral trading system is an attempt by governments to make the business environment stable and predictable as sometimes, promissing not to raise a trade barrier can be as important as lowering one, because the promise gives businesses a clearer view of their future opportunities. With stability and predictablility, investment is encouraged, employment opportunities are generated and consumers can fully enjoy the benefits of competition.
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