Exhibit 15-3 Prior to the year 2000,the United States considered renewal of Most Favored Nation (MFN)trading status with China annually (Most Favored Nation trading status is now called Normal Trade Relations).Historically,legislators made threats of not renewing MFN status because of alleged human rights abuses in China.The nonrenewable of MFN trading status would likely have triggered retaliatory measures by China.The game below reflects the potential economic gains from trade in a scenario in which China chooses whether to impose trade sanctions against U.S.firms and the United States chooses whether to renew MFN status with China.
Refer to Exhibit 15-3.If trade negotiators are able to communicate effectively about the consequences of various trade policies (i.e.,enter into and enforce an agreement about the policy that they should adopt),then we would expect the game outcome to be:

Question

Exhibit 15-3 Prior to the year 2000,the United States considered renewal of Most Favored Nation (MFN)trading status with China annually (Most Favored Nation trading status is now called Normal Trade Relations).Historically,legislators made threats of not renewing MFN status because of alleged human rights abuses in China.The nonrenewable of MFN trading status would likely have triggered retaliatory measures by China.The game below reflects the potential economic gains from trade in a scenario in which China chooses whether to impose trade sanctions against U.S.firms and the United States chooses whether to renew MFN status with China.
 Refer to Exhibit 15-3.If trade negotiators are able to communicate effectively about the consequences of various trade policies (i.e.,enter into and enforce an agreement about the policy that they should adopt),then we would expect the game outcome to be:

Quizplus · Accepted Answer

The Answer of Exhibit 15-3 Prior to the year 2000,the United States considered renewal of Most Favored Nation (MFN)trading status with China annually (Most Favored Nation trading status is now called Normal Trade Relations).Historically,legislators made threats of not renewing MFN status because of alleged human rights abuses in China.The nonrenewable of MFN trading status would likely have triggered retaliatory measures by China.The game below reflects the potential economic gains from trade in a scenario in which China chooses whether to impose trade sanctions against U.S.firms and the United States chooses whether to renew MFN status with China.
 Refer to Exhibit 15-3.If trade negotiators are able to communicate effectively about the consequences of various trade policies (i.e.,enter into and enforce an agreement about the policy that they should adopt),then we would expect the game outcome to be:

Exhibit 15-3 Prior to the Year 2000,the United States Considered