Question

Distinguish between the following :

Strategic and Minority sale

Bilateral and Multi – lateral trade

Tariff and Non – tariff barriers.

Answer 1

Difference between Strategic and Minority Sale.

Strategic Sale	Minority Sale
(i) Strategic sale involves the sale of minimum 51 % of a Public Sector Unit (PSU) to the private sector.	(i) Minority sale involves the sale of less than 49% stake of a PSU to the private sector.
(ii) The control and management of PSU is transferred to the private sector.	(ii) 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.	(ii) Minority disinvestment are made via public offers.

Bilateral and Multi – lateral trade

Bilateral Trade	Multi-lateral Trade
(i) It is a trade agreement between two countries.	(i) 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.	(ii) Negotiations done with many countries together which saves time.
(iii) Encourages economic cooperation bet when two countries.	(iii) Encourages globalisation integrating many countries of the world

Tariff and Non – tariff barriers.

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.	(i) It refers to the restriction 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.	(ii) Non-tariffbarriers like import quotas and voluntary export restrainsts are now abolished under WTO regime.
(iii) Tariff barriers are more explicit.	(iii) Non-tariffbarriers such as monetary conditions and labour issues are not that explicit.