Of the Three Main Principles of GATT, the Most Favored

question 16

Multiple Choice

 Of the three main principles of GATT, the most favored nation principle meant that

• A) a tariff rate granted to one member of GATT would be extended to all members.
• B) foreign firms would be subject to the same rules and regulations as a country's domestic firms.
• C) trade disputes would be settled by the unanimous agreement of all parties to the dispute.
• D) countries should specialize in producing goods for which they have the lowest opportunity cost of production.

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Definitions:

Crosscurrent Exchange

A mechanism of exchange (often of gases or fluids) in opposite or perpendicular directions, enhancing the efficiency of transfer.

Exhalation

The process of breathing out carbon dioxide and other gases from the lungs to the atmosphere.

Diffusion

The movement of molecules or particles from an area of higher concentration to an area of lower concentration, a process that occurs until equilibrium is reached.

Respiratory Cycle

The process involving inhalation and exhalation of air through the respiratory system, facilitating gas exchange with the environment.