Assertion: The act of opening up economies for trading is known as Trade Liberalisation or Free Trade.
Reasoning: Free trade is done by bringing down trade barriers like tariffs.

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

The correct answer is Option 1: Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Assertion: The act of opening up economies for trading is known as Trade Liberalisation or Free Trade. Correct. Trade liberalization refers to the removal or reduction of restrictions or barriers on the free exchange of goods between nations. This process effectively "opens up" an economy to the global market, allowing for free trade.
Reasoning: Free trade is done by bringing down trade barriers like tariffs.Correct. Free trade is practically achieved by eliminating or reducing government-imposed restrictions. These include tariffs (taxes on imports) and non-tariff barriers (such as quotas or complex regulations).

Why the Reason explains the Assertion:

The Assertion defines what trade liberalization is (opening the economy), and the Reason explains how it is achieved (by bringing down barriers like tariffs). Since the mechanism described in the Reason is the exact process that leads to the state described in the Assertion, the Reason is a correct and direct explanation. In the context of the Indian economy (especially the 1991 reforms), this shift allowed for greater integration with the global economy by making it cheaper and easier for goods to move across borders.