Distinguish between the following:
(i) Strategic and minority sale
(ii) Bilateral and multi-lateral trade
(iii) Tariff and non-tariff barriers
Distinguish between the following:
(i) Strategic and minority sale
(ii) Bilateral and multi-lateral trade
(iii) Tariff and non-tariff barriers
(i) Differences between strategic and minority sale are
BasisStrategic saleMinority saleMeaningStrategic sale involves the sale of minimum 51%Minority sale involves the sale of less that 49% stake of a stake of a public sector unit (PSU) to the privatePSU to the private sector.sector.ControlThe control and management of PSU is transferredThe control and management of PSU remains with theto the private sector.government as it holds the majority stake.ProcessIt is done through a process of competitive biddingMinority disinvestments are made via public offers.and subsequent sales to the partner.
(ii) Differences between bilateral and multi-lateral trade are:
BasisBilateral TradeMulti-lateral TradeMeaningIt is a trade agreement between two countries.It is a trade agreement with more than two countries.NegotiationsSeparate negotiations are required to be doneNegotiations are done with many countries together, which with different countries on one-to-one basis.saves time.EconomicEncourages economic cooperation between Encourages globalisation, integrating many countries of the Cooperationtwo countries.world.
(iii) Differences between tariff and non-tariff barriers are:
BasisTariff BarriersNon-tariff BarriersMeaningIt refers to the taxes imposed on the imports by aIt refers to the restrictions other than taxes imposed oncountry for providing protection to its domesticimports by a country for providing protection to its industries.industries.PurposeTariff barriers are allowed by the World TradeNon-tariff barriers like import quotas and voluntary export Organisation (WTO)to be imposed by its memberrestraints are now abolished under WTO regime.countries, though at reasonable rates.NatureTariff barriers are more explicit.Non-tariff barriers are not explicit.
(i) Differences between strategic and minority sale are
BasisStrategic saleMinority saleMeaningStrategic sale involves the sale of minimum 51%Minority sale involves the sale of less that 49% stake of a stake of a public sector unit (PSU) to the privatePSU to the private sector.sector.ControlThe control and management of PSU is transferredThe control and management of PSU remains with theto the private sector.government as it holds the majority stake.ProcessIt is done through a process of competitive biddingMinority disinvestments are made via public offers.and subsequent sales to the partner.
(ii) Differences between bilateral and multi-lateral trade are:
BasisBilateral TradeMulti-lateral TradeMeaningIt is a trade agreement between two countries.It is a trade agreement with more than two countries.NegotiationsSeparate negotiations are required to be doneNegotiations are done with many countries together, which with different countries on one-to-one basis.saves time.EconomicEncourages economic cooperation between Encourages globalisation, integrating many countries of the Cooperationtwo countries.world.
(iii) Differences between tariff and non-tariff barriers are:
BasisTariff BarriersNon-tariff BarriersMeaningIt refers to the taxes imposed on the imports by aIt refers to the restrictions other than taxes imposed oncountry for providing protection to its domesticimports by a country for providing protection to its industries.industries.PurposeTariff barriers are allowed by the World TradeNon-tariff barriers like import quotas and voluntary export Organisation (WTO)to be imposed by its memberrestraints are now abolished under WTO regime.countries, though at reasonable rates.NatureTariff barriers are more explicit.Non-tariff barriers are not explicit.
