Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statement and choose the correct answer.
Assertion (A) The World Investment Report has prepared a transnationality index comprising average of three ratios based on foreign assets, foreign sales, foreign employment.
Reason (R) Given the increasing liberal investment and environment policy in which such companies operate, transnationality would enhance strategy for greater penetration.

A. Both (A) and (R) are correct and (R) is the right explanation of (A)

B. Both (A) and (R) are correct, but (R) is not the right explanation of (A)

C. (A) is correct, but (R) is incorrect

D. Both (A) and (R) are incorrect

Answer: Option A