Consider the following statements with respect to Inverted Duty structure 1 It is a situation where ...........

Explanation:

Neither 1 nor 2

"It is a situation where export duty on finished goods is low compared to the export duty on raw materials that are used in the production of such finished goods." - This statement is incorrect. An inverted duty structure refers to a situation where the duty on finished goods is higher than the duty on raw materials, not the other way around.

"The objective is to make domestic industry more competitive against foreign industry." - This statement is also incorrect. The objective of an inverted duty structure is often to protect the domestic industry producing finished goods by making it more difficult for foreign competitors to export similar finished goods. It does not necessarily aim to make the domestic industry more competitive; rather, it can provide protection from foreign competition.

Therefore, the correct option is 4, "Neither 1 nor 2."