Assertion (A): Worldwide spread of MNCs was a notable feature of the 1950s and 1960s.

Reason (R): US businesses expanded worldwide, and Western Europe and Japan recovered to become industrial economies.

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

Both (A) and (R) are true and (R) is not the correct explanation of (A)

(A) is true, but (R) is false

(A) is false, but (R) is true

answer is B.

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Detailed Solution

Large companies that conduct business internationally are known as multinational corporations (MNCs). In the 1920s, the first international firms were established. The global expansion of MNCs characterised the 1950s and 1960s. Multinational corporations were forced to relocate their production facilities and eventually become local producers in as many countries as possible due to high import taxes imposed by various governments.
On the other hand, US companies expanded internationally. Moreover, Japan and Western Europe recovered to establish their independent industrialised economy after the Second World War. Thus these countries grew less dependent on the World Bank and IMF.
Hence, while both the Assertion and the Reason are true, the Reason is not the proper justification for the Assertion.

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