According to the most-favored-nation (MFN) principle,
A)states cannot rely on comparative advantage in their trade policies.
B)goods produced at home are treated the same for import and export agreements.
C)tariff preferences granted to one state must be granted to all others exporting the same product.
D)import quotas can be used to regulate trade, but export quotas cannot be used.
E)certain important trading partners should be given favors status.

Question

Quizplus · Accepted Answer

The most-favored-nation (MFN) principle requires that countries give equal treatment to all their trading partners, by applying the same tariffs or trade policies to all countries exporting the same product, regardless of their origin or size. This principle ensures fairness and prevents discrimination, as it guarantees that no country receives preferential treatment over others. Therefore, C is the correct answer. Choices A, B, D, and E are incorrect because they do not accurately reflect the definition or purpose of the MFN principle.

According to the Most-Favored-Nation (MFN) Principle