Assertion: The developed economies are investing heavily on mining, processing and refining stages of production.
Reasoning: Labour cost is very high in developed countries.
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: Assertion (A) is not true but Reasoning (R) is correct.
Assertion: The developed economies are investing heavily on mining, processing and refining stages of production. This statement is false. On the contrary, developed countries are shifting away from primary and labour-intensive industrial activities. Instead, they prefer to import raw or semi-processed materials from developing nations and focus their internal investments on high-technology, research, and service-oriented sectors.
Reasoning: Labour cost is very high in developed countries. This is also true. Mining and refining are highly labor-intensive and often involve hazardous working conditions. In developed economies, the cost of labor is significantly high due to minimum wage laws, strong labor unions, and high standards of living.
NCERT: "The developed economies are retreating from mining, processing and refining stages of production due to high labour costs, while the developing countries with large labour force and striving for higher standard of living are becoming more important."