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What is the purpose of the Most Favored Nation (MFN) principle in international trade?
  • a)
    To grant special privileges to developing nations
  • b)
    To offer preferential treatment to specific countries
  • c)
    To eliminate discriminatory trade practices
  • d)
    To establish trade blocs among neighboring countries
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the purpose of the Most Favored Nation (MFN) principle in inte...
The Most Favored Nation (MFN) principle requires a country to treat all its trading partners equally and without discrimination. If a country grants favorable treatment, such as reduced tariffs, to one trading partner, it must extend the same treatment to all other trading partners.
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What is the purpose of the Most Favored Nation (MFN) principle in international trade?a)To grant special privileges to developing nationsb)To offer preferential treatment to specific countriesc)To eliminate discriminatory trade practicesd)To establish trade blocs among neighboring countriesCorrect answer is option 'C'. Can you explain this answer?
Question Description
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