What does it mean when a country grants most favored nation (MFN) status, also known as normal trade relations, to another country?

Show Answers

Impose a lower tariff on that country's goods compared to all other countriesApply a tariff rate on that country's goods that is not higher than those applied to other countriesSet a higher tariff on that country's goods than on any other country's productsAllow exports of any products to that country without restrictionsProvide exclusive trade benefits not available to other countries

Explanation

Option A is correct because granting most favored nation status means applying the lowest tariff rates to that country's products compared to all others. This ensures favorable trade terms. The other options either misunderstand the tariff application or imply unrestricted exports, which MFN status does not guarantee.