Statement 1: Traditional knowledge related to bio-resources can be exploited to develop modern applications and can also be used to save time, effort, and expenditure during their commercialisation.

Statement 2: Biopiracy is the term used to refer to the use of bio-resources by multinational companies and other organisations without proper authorisation from the countries and people concerned without compensatory payment.

Both statement I and statement II are correct.

The correct answer is Option (3) – Both statement I and statement II are correct.

Biopiracy is the term used to refer to the use of bio-resources by multinational companies and other organisations without proper authorisation from the countries and people concerned without compensatory payment.

Most of the industrialised nations are rich financially but poor in biodiversity and traditional knowledge. In contrast, the developing and underdeveloped world is rich in biodiversity and traditional knowledge related to bio-resources. Traditional knowledge related to bio-resources can be exploited to develop modern applications and can also be used to save time, effort and expenditure during their commercialisation.