Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): The failure of the international market to connect firms as collaborators will entice a company to enter with wholly owned operations or wholly owned FDI.

Reason (R):  The company perceives having operating advantages to overcome its liability of foreignness.

In the light of the above statements, choose the most appropriate answer from the options given below:

1
Both (A) and (R) are correct and (R) is the correct explanation of (A)
2
Both (A) and (R) are correct but (R) is not the correct explanation of (A)
3
(A) is correct but (R) is not correct
4
(A) is not correct but (R) is correct

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