The most-favored-nation clause of the WTO agreement stipulates that (LO7) a) no member nation may impose a tariff on the goods of any other member nation b) all member nations must offer all other member countries the same trade concessions as any member country c) each member may designate another member as a favored nation, providing that nation with trade concessions d) all member nations must sell their goods to other member nations at cost

The most-favored-nation (MFN) clause is an essential principle of the WTO agreement, designed to prevent discrimination among its member countries in terms of international trade. Essentially, it means that any trade concessions granted by a WTO member to another country should be automatically extended to all other WTO members. This way, every member is treated equally, fostering fair trade.

Now, let's evaluate each option provided and determine which one accurately describes the MFN clause. a) "no member nation may impose a tariff on the goods of any other member nation": This statement is not true, as the MFN clause does not entirely prohibit tariffs. Rather, tariffs can be imposed but should not be discriminatory, meaning that the same tariffs should apply to all WTO members. b) "all member nations must offer all other member countries the same trade concessions as any member country": This statement is true, as the MFN clause ensures that trade concessions granted by a member to one country are automatically extended to all other WTO members. This prevents discriminatory practices in international trade. c) "each member may designate another member as a favored nation, providing that nation with trade concessions": This statement is not true for the MFN clause of the WTO agreement. As per this clause, all WTO members should be treated equally, and no specific member should be designated as favored to receive exclusive trade concessions. d) "all member nations must sell their goods to other member nations at cost": This statement is not true, as the MFN clause does not dictate pricing strategies for WTO member nations. It only ensures equal treatment in trade concessions.

After evaluating each option, we can conclude that the most accurate description of the most-favored-nation clause of the WTO agreement is: b) "all member nations must offer all other member countries the same trade concessions as any member country."