Assertion (A): Global production has a complex structure.

Reason (R): Production of goods may take place in different parts of the world. For instance, equipment may be formed by combining components in different countries.

see full answer

Your Exam Success, Personally Taken Care Of

1:1 expert mentors customize learning to your strength and weaknesses – so you score higher in school , IIT JEE and NEET entrance exams.

An Intiative by Sri Chaitanya

Both (A) and (R) are true and (R) is the correct explanation of (A).

Both (A) and (R) are true but (R) is not the correct explanation of (A).

(A) is correct but (R) is wrong

(A) is wrong but (R) is correct

answer is A.

(Unlock A.I Detailed Solution for FREE)

Best Courses for You

JEE

NEET

Foundation JEE

Foundation NEET

CBSE

Detailed Solution

Both (A) and (R) are true and (R) is the correct explanation of (A).
Global production, indeed, has become a complex structure. This is because various product components are produced in multiple countries, assembled in one country, and transported to markets worldwide for sale. This is done to reduce the cost of production. The availability of factors of production in developing countries is cheap, so the output in these countries is also affordable. This led to the emergence of multinational companies.

Watch 3-min video & get full concept clarity