Consider the following statements in the context of Trade Related Investment Measures (TRIMs). 1. All restrictions on foreign capital companies are to be scrapped 2. No restriction will be imposed on any area of investment 3. Imports of raw material are to be allowed freely 4. Emport of part of the output will be mandatory Which of the above statements are correct?

The correct answer is: B. 1, 2 and 3

TRIMs are trade-related investment measures. They are measures that governments use to regulate foreign investment. TRIMs can be used to protect domestic industries from foreign competition, or to promote investment in certain sectors of the economy.

The first statement is correct. TRIMs require that all restrictions on foreign capital companies be scrapped. This means that foreign companies must be allowed to invest in any sector of the economy, and they must be treated the same as domestic companies.

The second statement is also correct. TRIMs do not allow governments to impose any restrictions on any area of investment. This means that governments cannot restrict foreign companies from investing in certain sectors of the economy, or from investing in certain ways.

The third statement is also correct. TRIMs require that imports of raw materials be allowed freely. This means that foreign companies must be allowed to import the raw materials they need to produce their products, and they must not be subject to any tariffs or other restrictions on imports.

The fourth statement is incorrect. TRIMs do not require that companies export part of their output. In fact, TRIMs generally prohibit governments from imposing export requirements on foreign companies.

In conclusion, the correct answer is: B. 1, 2 and 3.