Distinguish between the following: <br>
(i) Strategic and Minority sale <br>

(ii) Bilateral and Multi-lateral trade <br>

(iii) Tariff and Non-tariff barriers.
Medium

Solution

(i) The Government has been disinvesting by many methods. Two main methods are:
(a) Minority sale. In this method, equity is offered to investors through domestic public issues.
(b) Strategic sale. In this method, the government offloads above 51 percent of strategic sales.

(ii) Trade agreements involving more than two countries are referred to as multilateral trade agreements.
Trade agreements involving two countries are referred to as bilateral trade agreements.

(iii) Tariff Barriers. Tariff barriers are imposed on imports to make them relatively costly as a measure to protect domestic production.
Non-Tariff Barriers. They are imposed on the number of imports and exports.

Was this answer helpful? 0 0