Of the three main principles of GATT, the most favored nation principle meant that
A) a tariff rate granted to one member of GATT would be extended to all members.
B) foreign firms would be subject to the same rules and regulations as a country's domestic firms.
C) trade disputes would be settled by the unanimous agreement of all parties to the dispute.
D) countries should specialize in producing goods for which they have the lowest opportunity cost of production.

Question

Quizplus · Accepted Answer

The most favored nation principle of GATT states that any advantage, favor, privilege or immunity given to one nation should be extended to all member nations. This means that a tariff rate granted to one member of GATT would be extended to all members. Therefore, choice A is the correct answer.

Of the Three Main Principles of GATT, the Most Favored