Distinguish between the following
(i) Strategic and Minority sale
(ii) Bilateral and Multi-lateral trade
(iii) Tariff and Non-tariff barriers.
Answers
1. Strategic sale - is done by way of competitive bidding and the subsequent sales are made to the partner. It involves at least 51% of the state sale of the Public Sector Unit (PSU), whose management is transferred to the private sector for control.
Minority Sale – it is the disinvestment made through public offers. It involves less than 49% sale of state PSU and is controlled by the government.
2. Bilateral Trade - is a trade in between 2 countries, which encourages economic cooperation in between them. One-to-One Negotiations are made separately with each country.
Multi-lateral trade – is a kind of trade agreement which happens between more than 2 countries. It supposedly integrates many countries and encourages healthy globalization. The negotiations with different countries are made together at the same time.
3. Tariff Barriers – are the taxes that are imposed by a country on its imports in order to provide protection to the domestic industries. They are explicit and are approved by the WTO to be imposed at reasonable rates.
Non-tariff barriers – are the restrictions which are imposed on the imports by a country, other than the taxes. The Non-tariff barriers like labour issues and hygiene issues are not very explicit, and they have been majorly abolished by the WTO.