Cross-border trade with neighboring countries offers potential for Sikkim to:

Increase its tax base
Boost economic activity
Improve regional cooperation
All of the above

The correct answer is: All of the above.

Cross-border trade with neighboring countries offers potential for Sikkim to:

  • Increase its tax base. When goods and services are traded across borders, taxes are often levied on the value of the goods or services. This can provide a significant source of revenue for the government of Sikkim.
  • Boost economic activity. Cross-border trade can create jobs, stimulate investment, and increase economic growth. This can lead to a number of benefits for the people of Sikkim, including higher incomes, improved access to goods and services, and a better quality of life.
  • Improve regional cooperation. Cross-border trade can help to build trust and understanding between countries, and can lead to increased cooperation in other areas, such as security, education, and environmental protection.

In addition, cross-border trade can help to promote cultural exchange and understanding between different peoples. This can lead to a more tolerant and inclusive society, which is beneficial for everyone.

Overall, cross-border trade offers a number of potential benefits for Sikkim. It can increase tax revenue, boost economic activity, improve regional cooperation, and promote cultural exchange.