Which of the following statements best captures 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.

Question

Quizplus · Accepted Answer

The most-favored-nation (MFN) principle requires that a trade advantage, such as a lower tariff rate, given by one country to another must also be extended to all other countries that are part of the agreement. This ensures that all members receive equal treatment in trade agreements.

Which of the Following Statements Best Captures the Most-Favored-Nation (MFN)principle