Question 1
If a nation has most-favored-nation status conferred on it, then exports from that country
◦ will be priced higher than products exported from countries without most-favored-nation status.
◦ are exempt from all safety regulations.
◦ are sold below cost.
◦ are taxed at the lowest negotiated tariff rates.
Question 2
Economic integration
◦ occurs when two or more nations join to form a free-trade zone.
◦ occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets.
◦ occurs when countries are granted most-favored-nation status.
◦ occurs when one country voluntarily agrees to reduce its exports to another country.
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