The use of the most-favored-nation (MFN) principle [or normal trade relations (NTR)] is an attempt to attain __________ toward competing suppliers of imports to a country. Hence, the arrangement whereby developed countries permit duty-free entry on some goods coming from developing countries but levy tariffs on the same goods if coming from other developed countries is __________ the MFN [or NTR] principle.
A) discrimination; a departure from
B) discrimination; an example of
C) nondiscrimination; a departure from
D) nondiscrimination; an example of

Question

Quizplus · Accepted Answer

The use of the MFN principle is an attempt to attain nondiscrimination toward competing suppliers of imports to a country. Therefore, any arrangement that allows duty-free entry on goods from one country but not from another is a departure from the MFN principle, which requires treating all trading partners equally. Therefore, the best choice is C, nondiscrimination; a departure from the MFN principle.

The Use of the Most-Favored-Nation (MFN) Principle [Or Normal Trade