Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): Globalization is a multidimensional concept. It has political, economic and cultural dimensions and these must be adequately distinguished.

Reason (R): Globalization has economic dimensions and it involves of goods, trade and investment from one part of the world to another.

In the light of the above statements, choose the most appropriate answer from the options given below:

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

The correct answer is option (2) - Both (A) and (R) are true but (R) is NOT the correct explanation of (A)

Both Assertion (A) and Reason (R) are true, but Reason (R) does not provide an adequate explanation for Assertion (A).

Assertion (A) states that globalization is multidimensional, encompassing political, economic, and cultural aspects that need to be distinguished. This is true as globalization indeed involves various dimensions beyond just economic aspects.

Reason (R) focuses solely on the economic dimension of globalization, mentioning trade, goods, and investment. While this aspect of globalization is true, it does not sufficiently explain the multidimensional nature of globalization as asserted in (A).

Globalisation as a concept fundamentally deals with flows. These flows could be of various kinds — ideas moving from one part of the world to another, capital shunted between two or more places, commodities being traded across borders, and people moving in search of better livelihoods to different parts of the world. The crucial element is the ‘worldwide interconnectedness’ that is created and sustained as a consequence of these constant flows. Globalisation is a multi-dimensional concept. It has political, economic and cultural manifestations, and these must be adequately distinguished. It is wrong to assume that globalisation has purely economic dimensions, just as it would also be mistaken to assume that it is a purely cultural phenomenon.

What is often called economic globalisation usually involves greater economic flows among different countries of the world. Some of this is voluntary and some forced by international institutions and power ful countries. This flow or exchange can take various forms: commodities, capital, people and ideas. Globalisation has involved greater trade in commodities across the globe; the restrictions imposed by different countries on allowing the imports of other countries have been reduced. Similarly, the restrictions on movement of capital across countries have also been reduced. In operational terms, it means that investors in the rich countries can invest their money in countries other than their own, including developing countries, where they might get better returns. Globalisation has also led to the flow of ideas across national boundaries. The spread of internet and computer related services is an example of that.