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UPSC PYQPrelims 2020

Civil Services Examination · Question 56

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
Show answer & explanation

Answer: (C) 1 and 3 only

Explanation

The WTO TRIMS Agreement prohibits trade-distorting measures like quantitative restrictions; it applies only to trade in goods and does not regulate foreign investment as such.