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“Most favoured nation” status concept
This is where one country in a particular region is given a preference tax treatment by another country. The country that is favoured is considered as a strategic trading partner. Usually new rules regarding the flow of trade between the two countries are introduced e.g. china is given the most favoured status by the USA.
The benefits of this status are:-
i) To facilitate trade between the two countries
ii) Ensure transfer exchange of goods and services
iii) Foster economic co-operation
iv) Facilitate exchange of technical experts and invest most in the two countries.
Wilfykil answered the question on February 25, 2019 at 10:54
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