With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are…

With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports by foreign investors are prohibited. 2. They apply to investment measures related to trade in both goods and services. 3. They are not concerned with the regulation of foreign investment. Select the correct answer using the code given below:
  1. 1 and 2 only
  2. 2 only
  3. 1 and 3 only
  4. 1, 2 and 3

Solution

TRIMS prohibits trade-distorting investment measures like quantitative restrictions (1 correct). It applies only to trade in goods, not services (2 wrong). TRIMS deals with investment measures affecting trade — not directly with foreign investment regulation (3 correct). Answer: (c) 1 and 3 only.

Asked in: UPSC Prelims 2020

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