Liberalisation, Privatisation And Globalisation : An Appraisal

  • Question 69

    Distinguish between the following:

    (i) Strategic and Minority Sale.


    Strategic Sale : When the shares of Public Sector Undertakings (PSUs) mainly Navarators are sold to public, it is called Strategic Sale.

    Minority Sale : When shares of ordinary (small) public sector undertakings are sold to public, it is known as Minority sale. In this type of sale, the government keeps some kind of control with itself.

    Question 70

    Distinguish between the following:

    (ii) Bilateral and Multi-lateral Trade


    The trade between two countries is called bilateral trade and between more than two countries. It is called multi-lateral trade.

    Question 71

    Distinguish between the following:

    (iii) Tariff and Non-tariff barriers


    The barriers related to export and import duty are called tariff barriers and which are related to quota etc. are called non-tariff barriers to check the imports from other countries.

    Question 72

    Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?


    In 1996, in order to improve efficiency and to infuse professionalism, and enable the public sector undertaking to compete more effectively in the liberalised global environment, the Government chose Nine Public Sector Undertakings (PSUs) and declared them as navaratanas. They were given greater managerial and operational autonomy in taking various decisions to run the company efficiently and thus increase their profits.

    The granting of navaratanas status resulted in better performance of these companies.

    Gradually, the government has decided to help these Navaratanas in becoming independent so that they can expand themselves in the global markets and raise resources by themselves from financial markets.

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