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Define Trade Related Investment Measures (TRIMS)

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Final answer:

Trade Related Investment Measures (TRIMS) are policies that countries enact to regulate foreign investment in their territory. TRIMS can include restrictions on foreign ownership and requirements for local content. They can impact the ability of foreign investors to do business in a country.

Step-by-step explanation:

Trade Related Investment Measures (TRIMS) are policies that countries enact to regulate foreign investment in their territory. These measures can include various types of restrictions, such as limitations on foreign ownership or requirements for local content in goods produced by foreign investors.

For example, a country might have a TRIM that requires a certain percentage of a product to be made with locally sourced materials in order to promote domestic industries. Another example is a TRIM that limits the ownership of certain sectors, such as telecommunications or banking, to domestic companies.

TRIMS are an important consideration in international trade because they can impact the ability of foreign investors to do business in a country. These measures are often subject to scrutiny and negotiation in trade agreements to ensure fair treatment of foreign investors.

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