When country A grants a tariff concession to country B, the same concession automatically applies to all other countries that are members of the World Trade Organization (WTO). This is known as the __________ principle.
A) reciprocity
B) transparency
C) most favored nation
D) collaborative

Question

Quizplus · Accepted Answer

The Most Favored Nation (MFN) principle requires that a WTO member must apply the same conditions on all trade with other WTO members. Hence, if a country grants a tariff concession to one member, it must extend this concession to all other members.

When Country a Grants a Tariff Concession to Country B