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. A

   1 and 2 only

   1 and 2 only. TRIMs is goods, not services (GATS is services).

2. B

   2 only

   2 only. Statement 2 fails.

3. C

   1 and 3 only

   1 and 3 only. Quantitative import restrictions linked to investment are prohibited. TRIMs disciplines certain investment measures that affect trade in goods; it is not a general FDI-regulation code, and it does not cover services.

4. D

   1, 2 and 3

   All three. Services limb is false.

Summary. Official key is (c) 1 and 3 only. TRIMs bans trade-related investment measures such as local-content and trade-balancing QRs on goods. It does not apply to services and is not the WTO’s full foreign-investment statute.