Economy2020
With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?
- Quantitative restrictions on imports by foreign
- They apply to investment measures related to trade in
- They are not concerned with the regulation of foreign
investment. Select the correct answer using the code given below:
Explanation
The correct option is "1 and 3 only" because Trade-Related Investment Measures (TRIMS) specifically prohibit quantitative restrictions on imports by foreign investors (statement 1), aiming to ensure that foreign investments do not lead to unjust trade barriers. However, TRIMS focuses on the investment measures that affect trade in goods, rather than directly pertaining to services (statement 2 is incorrect), and does not regulate the foreign investment itself but rather the consequential trade measures (statement 3 is correct). Thus, statements 1 and 3 align with the objectives of TRIMS as it seeks to create a fair trading environment while allowing for foreign investments.
