Assume the U.S. has granted "most-favored nation" status to Holland. This means that the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.

Question

Quizplus · Accepted Answer

"Most-favored nation" status means that the country receiving this status is entitled to all trade advantages, such as lowest tariffs, that the granting country offers to any trade partner. Therefore, the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.