Q. Consider the following statements regarding the concept of "Virtual Water":

1. A country that exports more food is likely to consume more virtual water.
2. Virtual water has no direct relation with real water.
3. Virtual water has major impacts on global trade policy.

Which of the above statements is/are correct?
Answer: Only 3 is correct
Notes: Virtual water refers to the amount of water embedded in the production and trade of commodities—especially food and industrial goods. Statement 3 is correct as it importantly influences global trade policy. Statement 1 is incorrect since exporting more food essentially exports more virtual water, not consumes it. Statement 2 is incorrect as virtual water is directly computed from real water usage in production.