GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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exports to that nation any products that it wants to purchase
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charge that nation’s products a lower tariff than any other nation’s
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charge that nation’s products a higher tariff than any other nation’s
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charge that nation’s products a tariff rate no higher than that on any other nation
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Detailed explanation-1: -In other words, if a country provides favourable treatment to one country, it must provide the same favourable treatment to all Member countries. Therefore, the essence of MFN treatment is non-discriminatory treatment by providing the same conditions given to one Member to other Members.
Detailed explanation-2: -The most-favored-nation clause is a stipulation that requires a country to provide concessions, privileges, or immunities that are to be granted to one nation in a trade agreement or to be granted to all other countries that are members of the World Trade Organization (WTO).
Detailed explanation-3: -The most favoured nation (MFN) principle is based on the idea that countries should treat all their trade partners equally-that no one country should be “more favoured.” It means no country should give special treatment to goods or services coming from one particular trading partner.
Detailed explanation-4: -Most-favoured-nation (MFN): treating other people equally Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.