question_answer 6)

Distinguish between the following (i) Strategic and Minority sale (ii) Bilateral and Multi-lateral trade (iii) Tariff and Non-tariff barriers

Answer:

Difference between Strategic and Minority Sale  

S.N.	Strategic Sale	Minority Sale
(i)	Strategic sate involves the sale of minimum 51 % state of a Public Sector    Unit (PSU) la the private sector.	Minority sale involves the sale of less than 49% slake of a PSU to the private sector.
(ii)	The control and management of PSU is transferred to the private sector.	The control and management of PSU remains with the government as it holds the majority stake.
(iii)	It is done through a process of competitive bidding and subsequent sales to the partner.	Minority disinvestment are made via public offers.

  Difference between Bilateral and Multi-lateral Trade  

S.N.	Bilateral Trade	Multi-lateral Trade
(i)	It is a trade agreement between two countries	It is a trade agreement among more than two countries.
(ii)	Separate negotiations required to be done with different countries on one to one basis.	Negotiations done with many countries together which saves time.
(iii)	Encourages economic cooperation between two countries.	Encourages globalisation integrating many countries of the world.

  Difference between Tariff and Non-tariff Barriers  

S.N.	Tariff Barriers	Non-tariff Barriers
(i)	It refers to the taxes imposed on the imports by a country for providing protection to its domestic industries.	It refers to the restrictions other than taxes, imposed on imports by a country for providing protection to its domestic industries.
(ii)	Tariff barriers are allowed by World Trade Organisation to be imposed by its member countries though at reasonable rates.	Non-tariff barriers like import quotas and voluntary export restraints are now abolished under WTO regime.
(iii)	Tariff barriers are more explicit.	Non-tariff barriers such as sanitary conditions and labour issues are not that explicit.