Question

Which factor does a country prioritize when granting Most Favored Nation (MFN) status to another country?

• A. Increasing trade with that country
• B. Strengthening military relations
• C. Enhancing cultural relations
• D. Facilitating people-to-people contact

Hint:

Remember MFN is mainly about trade advantages and economic cooperation.
It ensures equal trade treatment to all favored countries.

Answer 1

The Correct Option is A

Step 1: Understand MFN status
The Most Favored Nation (MFN) status is a principle in international trade agreements. It means that the country granting this status will provide the other country with trade advantages, such as reduced tariffs or fewer trade barriers, equal to those given to its most favored trading partner.
Step 2: Prioritization factor
The primary aim of MFN status is to promote trade relations between countries by ensuring non-discriminatory trade policies. This helps increase trade volumes and economic cooperation.
Military relations, cultural relations, or people-to-people contact are not the direct reasons for granting MFN status.
Step 3: Conclusion
Therefore, the main factor prioritized is increasing trade with that country.