Question
Countries A, B and C belong to the WTO, and Countries X and Y do not. Country A charges a 7% tariff on clothing imported
Countries A, B and C belong to the WTO, and Countries X and Y do not. Country A charges a 7% tariff on clothing imported from Country B. Countries C, X, and Y also export clothing to Country A. Under the Most Favoured Nation (MFN) rule:
a. | Country C gets an automatic 7% tariff on clothing exported to Country A. | |
b. | Country C must petition Country A under the WTO to get a 7% tariff on clothing exported to Country A. | |
c. | Countries X and Y are entitled to a 7% tariff on clothing exported to Country A. | |
d. | Countries C, X, and Y are all entitled to a 7% tariff on clothing exported to Country A. |
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