Question

Under the World Trade Organization (WTO) system, free riding may occur due to the Most Favored Nation (MFN) principle, but in practice no such free riding has occurred or has been curbed to a minimal level. Explain why.

Answer 1

. Under the WTO system free riding due to the most favoured Nation principle but in practice no such free riding has occurred or has been cured to a minimum level the main reason behind this is that in the world trade organisation most favoured Nation are considered to be the doors Nation who treats all of the nation equally and they believe in the principle of equality where are all the trading activities working under up preset system.
The free riding concept is not in a practicing World Trade Organisation because of a simple reason that when the trend of global competition there is a price war among the countries and because of this there is a group in the world forum where the goods and services are traded on the basis of the maximum benefit principle.
The free riding concept the most favoured Nation refer to give equality things to the other Nations here all the activities are based on the concessions in the tariff rates taxes import quota and other international trade benefits but due to the Global competition it is very difficult for all the nation to maintain the activities according to the free riding concept