Assertion (A): Globalization refers to the free cross-border movement of goods, services, capital, information, and people.

Reason (R): Countries are consistently evolving innovative marketing barriers that are WTO compatible.

Choose the correct option:

Correct option is B

1. Explanation of Assertion (A):
· Globalization refers to the free movement of goods, services, capital, information, and people across national borders.
· It emphasizes integration of economies worldwide, driven by trade liberalization, advancements in technology, and the removal of trade barriers.
2. Explanation of Reason (R):
· While globalization promotes free trade, countries often introduce marketing barriers (e.g., technical standards, non-tariff barriers) that comply with WTO guidelines to protect their domestic industries.
· For example, countries may impose strict product quality requirements or environmental standards that restrict imports.
3. Why Both (A) and (R) Are True, but (R) Does NOT Explain (A):
· The Assertion focuses on the broader definition of globalization, while the Reason highlights a specific practice by countries to balance globalization with domestic industry protection. These are independent concepts.
Information Booster:
1. Key Features of Globalization:
· Free Trade: Reduction of tariffs and trade restrictions.
· Global Capital Flows: Investment opportunities across borders.
· Cultural Exchange: Spread of ideas, technology, and cultural practices.
2. Examples of WTO-Compatible Marketing Barriers:
· Technical Barriers to Trade (TBT): Standards for product safety and environmental protection.
· Sanitary and Phytosanitary (SPS) Measures: Restrictions to protect human, animal, or plant life.
Additional Knowledge:
1. Role of WTO in Globalization:
· The WTO promotes free trade by reducing barriers, resolving disputes, and ensuring fair trade practices.
· It also provides flexibility for countries to impose restrictions for legitimate reasons, such as health and safety.
2. Criticism of Marketing Barriers:
· While compliant with WTO, such barriers may act as disguised protectionism, hindering true free trade.