Abstract
This research analyzes the consequences of the likely revocation of the principle of the most-favored-nation (MFN) in trade relations between the European Union (EU) and Russia. The analysis shows that this event would have more negative effects on Russia than the EU. The increase in import tariffs would benefit the EU with increase in profits but would lead to an increase in the cost of products for buyers in the short term, pushing them into new, more advantageous markets. Although Russia is trying to replace EU products with Asian ones, and gaining success too, the case of foreign direct investment (FDI) is different, as the country is still heavily dependent on EU.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
