Explanation:

Let’s break this down:

- It stimulates competition: Foreign trade and investment force local companies to step up their game. More players in the market usually means more choices and better prices for everyone.

- It improves resource allocation: Countries can focus on what they do best, exporting those goods or services, and importing others. This typically makes the global use of resources more efficient.

- It facilitates international distribution of technology: When companies invest in other countries, new tech and know-how are often shared, boosting development.

- It enhances environmental protection: This one’s tricky. While trade can spread greener technology, openness to foreign investment doesn’t automatically clean up the environment. Sometimes it actually means laxer enforcement if standards are weaker elsewhere.

Now, about the options:

- Option 1: Only the first three statements (competition, allocation, technology).

- Option 2: Statements 2, 3, 4 (no competition).

- Option 3: Competition, technology, environment.

- Option 4: Competition, allocation, environment.

- Option 5: All four statements.

Here’s the thing: While the first three statements are pretty universally seen as advantages, the link between foreign trade/investment and environmental protection just isn’t as tight. That one is debatable, not a guaranteed benefit. So, the option that typically checks out is Option 1: 1, 2, and 3 only.

Correct answer: Option 1 (1, 2, and 3 only)