Which of the following is an exception to the most favored nation principle?
A) trade in petroleum
B) trade with Japan
C) tariff concessions negotiated within a free-trade area or a customs union
D) trade in services

Question

Quizplus · Accepted Answer

Tariff concessions negotiated within a free-trade area or a customs union are an exception to the most favored nation principle. This means that countries within a free-trade area or a customs union agree to lower or eliminate tariffs on goods traded between them, but not necessarily on goods traded with countries outside of the group.

Which of the Following Is an Exception to the Most