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Answer» 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. |
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