GRE (Generic Routing Encapsulation) has the following benefits:

B. VPN Construction — GRE is often used to build site-to-site VPNs.

C. ARP Encapsulation — GRE supports Layer 2 protocol encapsulation such as ARP.

D. Multicast Support — GRE tunnels can encapsulate multicast packets, unlike traditional IPsec.

A. Enlarging the hop limit is incorrect — GRE does not inherently change TTL or hop behavior; routing protocols still use standard IP processing.

Exact Extract - Huawei HCIE-Datacom Tunneling Chapter:

“GRE can encapsulate multicast and broadcast packets and supports L2 protocols like ARP. It is often used for VPN construction over the internet.”