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Business Environment and International Business
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Consider the following statements.
Assertion (A): The import volume tends to be very high when there is simultaneous high eco-nomic growth rate and a sharp fall in the relative price of imports and vice versa.
Reason (R): High rate of growth, ceteris paribus, is associated with rise in imports and increase in the imports, ceteris paribus, is associated with a fall in the relative price of imports.

Answer & Solution
Correct Answer: Option A
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