We study how the most-favored-nation (MFN) clause affects the tariffs of an importer, technology adoption by exporters, and global welfare. Our main contribution is to consider the disclosure effect of the MFN clause, that is, the fact that it makes tariffs not only uniform but also observable...

We study how the most-favored-nation (MFN) clause affects the tariffs of an importer, the technology choices of exporters, and global welfare. Our key contribution is to consider that the MFN clause does not only impose nondiscriminatory tariffs but also makes tariffs observable to third...