Which organization maintains a policy of most-favoured nation?

Which organization maintains a policy of most-favoured nation?

• A. IMF
• B. WTO
• C. World Bank
• D. OPEC

Answer: (B)

Most-favoured-nation is a rule in international trade that ensures non-discrimination among trading partners: if a country grants a tariff reduction or other concession to one member, it must extend the same terms to all WTO members. This creates uniform trade conditions and prevents special favoritism. The organization that codifies and enforces these trade rules, including MFN, is the World Trade Organization. The other organizations—IMF, World Bank, and OPEC—do not administer MFN policy: the IMF handles monetary stability, the World Bank focuses on development financing, and OPEC coordinates oil production and pricing.

Most-favoured-nation is a rule in international trade that ensures non-discrimination among trading partners: if a country grants a tariff reduction or other concession to one member, it must extend the same terms to all WTO members. This creates uniform trade conditions and prevents special favoritism.

The organization that codifies and enforces these trade rules, including MFN, is the World Trade Organization. The other organizations—IMF, World Bank, and OPEC—do not administer MFN policy: the IMF handles monetary stability, the World Bank focuses on development financing, and OPEC coordinates oil production and pricing.