Asked by Cierra Clark on May 14, 2024
Verified
Assume the U.S. has granted "most-favored nation" status to Holland. This means that the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.
Most-Favored Nation
A principle in international trade agreements that ensures a country grants to another country the most favorable treatment that it gives to any other country regarding tariffs, trade, and other terms.
Dutch Imported Tobacco
Refers to tobacco products that are imported from the Netherlands, known for their distinct blends and quality.
- Understand the implications of "most-favored nation" status in international trade agreements.
Verified Answer
AM
Aimee MontesMay 15, 2024
Final Answer :
True
Explanation :
"Most-favored nation" status means that the country receiving this status is entitled to all trade advantages, such as lowest tariffs, that the granting country offers to any trade partner. Therefore, the tariff on Dutch imported tobacco must be at least as low as that charged on tobacco from any other nation.
Learning Objectives
- Understand the implications of "most-favored nation" status in international trade agreements.