Question

Define the following terms
a) Disinvestment b) Import Substitution

Answer 1

Answer:

Explanation:    Disinvestment refers to the use of a concerted economic boycott to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change

Import substitution industrialization (ISI) is a trade and economic policy which advocates replacing foreign imports with domestic production. ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products.

Answer 2

Answer:

Explanation:

a) Disinvestment: Privatisation of the public sector enterprises (PSEs) by

selling off a part/whole of the equity to the general public

or any private sector player is known as disinvestment.

b) Outsourcing: Hiring of regular service from external sources, mostly

from foreign countries, which was previously provided

internally or from within the country is known as

outsourcing.