Economics · Business Environment and International Business
Given below are two statements. One is labelled as Assertion A and the other is labelled as Reason R: Assertion A: Foreign investment is playing an increasing role in economic development and contributes a significant share to domestic investment, employment generation, and exports. Reason R: A substantial increase in the magnitude of capital inflows has remarkably improved the balance of payments and foreign exchange reserve position of the economy. In the light of the above statements, choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A is not correct but R is correct
- 2A is correct but R is not correct
- 3Both A and R are correct and R is NOT the correct explanation of A✓
- 4Both A and R are correct and R is the correct explanation of A
Correct answer
Both A and R are correct and R is NOT the correct explanation of A
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