Assertion (A): Inward-looking trade policy kept Indian firms from reaching world markets.
Reason (R): Protected firms produced for the home market and rarely became competitive enough to export.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Without competition at home, firms did not reach the costs and quality needed abroad.
R explains A.

Concept: Criticism of protection
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsImport substitution, tariffs and quotas

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Ten questions from Industry & Trade, 1950–90, at your own pace.

Practise this chapter →

Ten questions from Industry & Trade, 1950–90, at your own pace.

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Assertion (A): Inward-looking trade policy kept Indian firms from reaching world markets.Reason (R): Protected firms produced for the home market and rarely became competitive enough to export.

Explanation

Assertion (A): Inward-looking trade policy kept Indian firms from reaching world markets.
Reason (R): Protected firms produced for the home market and rarely became competitive enough to export.