Distinguish between the following (i) Strategic and Minority sale (ii) Bilateral and Multi-lateral trade (iii) Tariff and Non-tariff barriers | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-3 Liberalisation, Privatisation and Globalisation



Q.6:- Distinguish between the following
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers

 

Answer:- 

 

(i) Strategic and Minority sale

Strategic Sale
Minority Sale
(i) Strategic Sale refers to the sale of 51% or more stake of a PSU to the private sector who bids the highest. Minority Sale refers to the sale of less than 49% stake of a PSU to the private sector.
(ii) The ownership of PSU is handed over to the private sector. The ownership of PSU still remains with the government as it holds 51% of stakes.

 

 

(ii) Bilateral and Multi-lateral trade



Bilateral Trade
Multilateral Trade
(i) It is a trade agreement between two countries It is a trade agreement among more than two countries.
(ii) This is an agreement that provides equal opportunities to both the countries. This is an agreement that provides equal opportunities to all the member countries in the international market

 

 

(iii) Tariff and Non-tariff barriers.

Tariff Barriers
Non-tariff Barriers
(i) It refers to the tax imposed on the imports by the country to protect its domestic industries. It refers to the restrictions other than taxes, imposed on imports by the country.
(ii) It includes custom duties, export-import duties It includes quotes and licenses.
(iii) It is imposed on the physical units (like per tonne) or on value of the goods imported. It is imposed on the quantity and quality of the goods imported.