Explanation:

- Statement 1: It stimulates competition.

- Foreign trade and investment open markets, prompting local businesses to compete globally.

- Statement 2: It improves resource allocation.

- Efficient distribution and access to varied resources are possible through international trade.

- Statement 3: It facilitates international distribution of technology.

- Through trade, countries share and access advanced technologies, boosting innovation.

- Statement 4: It enhances environmental protection.

- This statement is less commonly recognized as a direct advantage unless tied to environmental agreements or standards.

Options Analysis:

- Option 1: 1, 2 and 3 only

- Option 2: 2, 3 and 4 only

- Option 3: 1, 3 and 4 only

- Option 4: 1, 2 and 4 only

- Option 5: All of the above

All options highlight the typical advantages of trade, except statement 4 is less clear-cut unless associated with specific agreements.

Correct Answer: Option 1: 1, 2 and 3 only

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