1.

Privatisation: It is the process of transferring ownership of a business, enterprise,

agency, public service or public property from the public sector (a government) to
the private sector, either to a business that operates for a profit or to a non-profit
organization. It may also mean government outsourcing of services or functions to
private firms, e.g. revenue collection, law enforcement, and prison management.
2. Disinvestment: For purposes of privatisation, the government has adopted the
route of disinvestment which involves the sale of the public sector equity to the
private sector and the public at large.
3. De-reservation: Initially there were 17 industries under the 1956 Resolution for the
public sector. It was reduced to 8 in 1991 industrial policy. In 2001, the government
opened up arms and ammunition sector to private sector. Thus, there are only 3
industries reserved exclusively for the public sector (rail transport, atomic energy
and minerals specified in atomic energy).
4. Convertibility of Rupee: Under partial convertibility, a dual exchange rate was
fixed under which 40% of Forex was to be surrendered at the official exchange rate
while 60% of Forex was to be converted at market determined rate. But in the
1993-94 Budget, the dual exchange system was dispensed with and a unified
exchange rate system introduced. The 60:40 ratio was extended to 100% conversion
for all trade transactions and all receipts.
5. De-canalisation: In the pre-reform period, a large number of exports and imports
used to be canalised through the public sector agencies in India. After the
economic reforms, government decided to decanalise 16 export items and 20
import items.
6. Globalisation: It is a process of development of the world into a single integrated
economic unit. Economic globalization is the increasing economic interdependence
of national economies across the world through a rapid increase in cross-border
movement of goods, service, technology and capital.
7. Bilateral Trade: Bilateral trade or clearing trade is trade exclusively between two
states, particularly, barter trade based on bilateral deals between governments,
and without using hard currency for payment. Bilateral trade agreements often aim
to keep trade deficits at minimum by keeping a clearing account where deficit
would accumulate.
8. Multilateral Trade: Multilateral trade agreements are between many nations at one
time. For this reason, they are very complicated to negotiate, but are very
powerful once all parties sign the agreement. The primary benefit of multilateral
agreements is that all nations get treated equally, and so it levels the playing field,
especially for poorer nations that are less competitive by nature.
9. Free Trade: Free trade is a policy by which governments do not discriminate against
imports or exports. Free trade is exemplified by the European Union / European
Economic Area and the North American Free Trade Agreement, which have
established open markets with very few restrictions to trade.
10. MNC: When a corporation that is registered in more than one country or that has
operations in more than one country may be attributed as MNC. Usually, it is a
large corporation which both produces and sells goods or services in various
countries. It can also be referred to as an international corporation.
11. TNC: A transnational corporation (TNC) differs from a traditional MNC in that it
does not identify itself with one national home. While traditional MNCs are national
companies with foreign subsidiaries, TNCs spread out their operations in many
countries sustaining high levels of local responsiveness. TNC employs senior
executives from many countries and try to make decisions from a global
perspective rather than from one centralized headquarters.
12. SEZ: It is a cluster of industries engaged in manufacturing and service sectors. The
products are 100% export oriented and do not depend on national or local clients.
SEZs help in generation of additional economic activity, promotion of exports of
goods and services, promotion of investment from domestic and foreign sources,
creation of employment opportunities and development of infrastructure facilities.
13. AEZ: It gives primacy to promotion of agricultural exports and effects a
reorganisation of our export efforts on the basis of specific products and specific
geographical areas. The land has to be more than 1000 hectares. The AEZs have the
state-of-art facilities. AEZs get subsidized infrastructure facilities; get R&D
support, transportation and freight charges.
14. M & A: Mergers and Acquisitions are both an aspect of corporate strategy, corporate
finance and management dealing with the buying, selling, dividing and combining
of different companies and similar entities that can help an enterprise grow rapidly
in its sector or location of origin, or a new field or new location, without creating a
subsidiary, other child entity or using a joint venture.
15.Joint Venture: It is a business agreement in which the parties agree to develop, for
a finite time, a new entity and new assets by contributing equity. They exercise
control over the enterprise and consequently share revenues, expenses and assets.