Which Statement Best Characterizes the GATT's Most-Favoured Nation Clause

question 58

Multiple Choice

Which statement best characterizes the GATT's most-favoured nation clause?  

• A) Tariff reductions that are granted by a member of GATT to imports from one country apply only to that country. 
• B) Tariff reductions that are granted by a member of GATT to imports from one country are extended only to certain favoured members of GATT. 
• C) Tariff reductions that are granted by a member of GATT to imports from one country are extended to all other members of GATT. 
• D) Tariff reductions that are granted by a member of GATT to imports from one country must be matched by equivalent quota reductions.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating the contribution of sales to fixed costs and profit.