Liberalisation, Privatisation And Globalisation : An Appraisal

Question 69
CBSEENEC11008896

Distinguish between the following:

(i) Strategic and Minority Sale.

Solution

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
CBSEENEC11008897

Distinguish between the following:

(ii) Bilateral and Multi-lateral Trade

Solution

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

Question 71
CBSEENEC11008898

Distinguish between the following:

(iii) Tariff and Non-tariff barriers

Solution

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
CBSEENEC11008899

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

Solution

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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