The Use of the Most-Favored-Nation (MFN) Principle [Or Normal Trade

question 5

Multiple Choice

The use of the most-favored-nation (MFN) principle [or normal trade relations (NTR) ] is an attempt to attain __________ toward competing suppliers of imports to a country. Hence, the arrangement whereby developed countries permit duty-free entry on some goods coming from developing countries but levy tariffs on the same goods if coming from other developed countries is __________ the MFN [or NTR] principle.

• A) discrimination; a departure from
• B) discrimination; an example of
• C) nondiscrimination; a departure from
• D) nondiscrimination; an example of

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Definitions:

Action Plan

A detailed outline of the steps, tasks, and resources required to achieve specific goals or objectives.

Overall Schedule

A comprehensive plan that outlines all planned activities and their timelines in a project or operation.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, essentially explaining how it operates and makes money.