a third country can have the same tariff reductions that the U.S. negotiates with another country.
Explanation:
The most favored nation is a clause that the United States sets on their economic agreements that states that the benefits in tariffs that a nation negotiaties with the United States shall be also offered to the other nations that are members of the World Trade Organization (WTO), this is in order to create an equal treatment of other countries members of the WTO that do not have the same bargain power as the big countries.
The theory of mercantilism motivated overseas exploration as it posited that a country's power depended mainly on its wealth. Consequently, various nations sought to increase their wealth and power by establishing colonies where they could extract resources such as minerals which determined the wealth of a nation
