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 good

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Q: (IAS/2020)
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 :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,45,96,46,34,45,16

keywords: 

{'related investment measures': [0, 0, 0, 1], 'investment measures': [0, 0, 0, 1], 'foreign investment': [0, 0, 0, 1], 'quantitative restrictions': [0, 0, 0, 1], 'trims': [0, 0, 0, 1], 'imports': [0, 0, 0, 1], 'foreign investors': [0, 0, 0, 4], 'regulation': [3, 1, 2, 9], 'goods': [0, 1, 5, 27]}

The Trade-Related Investment Measures (TRIMS) are rules that apply to the domestic regulations a country applies to foreign investors, often as part of an industrial policy.

Option 1 is correct. TRIMS indeed prohibit quantitative restrictions on imports by foreign investors. This means a country cannot limit the number or value of goods a foreign investor can import.

Option 2 is incorrect. TRIMS only apply to trade in goods, not services. The restrictions that TRIMS impose only affects the physical commodities and not the non-tangible services.

Option 3 is also correct. They are about regulating foreign investment concerning trade in goods and not the control or regulation of foreign investment itself.

Therefore, the provided options 1 and 3, indeed are correct, making option-3 the right answer.