Given below are two statements: one is labelled as Assertion A and the other is labelled as Reason R
Assertion A: The critics argue that contemporary globalisation represents a particular phase of global capitalism that makes rich richer and poor poorer.
Reason R: Globalisation leads to income inequalities which in turn leads the developed countries to outsource production.
In the light of above statements, choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is option 2 - Both A and R are true and R is NOT the correct explanation of A
Assertion A: The critics argue that contemporary globalisation represents a particular phase of global capitalism that makes rich richer and poor poorer.
Reason R: Globalisation leads to income inequalities which in turn leads the developed countries to outsource production.
The Reason highlights an effect of globalisation but does not directly explain how globalisation leads to the rich becoming richer and the poor poorer, as mentioned in Assertion.
Globalisation is a very contentious subject and has invited strong criticism all over the globe. Critics of globalisation make a variety of arguments. Those on the left argue that contemporary globalisation represents a particular phase of global capitalism that makes the rich richer (and fewer) and the poor poorer. Weakening of the state leads to a reduction in the capacity of the state to protect the interest of its poor. Critics of globalisation from the political right express anxiety over the political, economic and cultural effects. In political terms, they also fear the weakening of the state. Economically, they want a return to self-reliance and protectionism, at least in certain areas of the economy. Culturally, they are worried that traditional culture will be harmed and people will lose their age-old values and way.