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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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