International Marketing (CP-3204)
TOPIC-PUBLIC SECTOR TRADING AGENCIES
Prof. H. Ramananda Singh.
DBA, Assam University
Mou Roy Sec-B(44)
The public sector, sometimes referred to as the state sector or the government sector, is a part of the state that deals with either the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal. Examples of public sector activity range from delivering social security, administering urban planning and organizing national defense. The organization of the public sector (public ownership) can take several forms, including: * Direct administration funded through taxation; the delivering organization generally has no specific requirement to meet commercial success criteria, and production decisions are determined by government. * Publicly owned corporations (in some contexts, especially manufacturing, "state-owned enterprises"); which differ from direct administration in that they have greater commercial freedoms and are expected to operate according to commercial criteria, and production decisions are not generally taken by government (although goals may be set for them by government). * Partial outsourcing (of the scale many businesses do, e.g. for IT services), is considered a public sector model.
AIMS OF PUBLIC SECTOR:
The following are the major aims of the public sector:
* Usually the aim of public sector business is to provide services to the community. For example if the transport system is owned by the government and it is running a bus service to an interior village and it is not getting enough customers, the government might still continue it as its main objective is to provide service and not to maximise profits. * Secondly Public sector strives to create employment.
* Public sector business usually locates in regions where there is underdevelopment so as to create jobs and income for local population.
PUBLIC SECTOR TRADING AGENCIES:
Public sector entities can be classified by either institutional or administrative sector. The classification of entities into institutional sectors involves determining whether a public sector body is either a General Government authority, a Public Trading Enterprise or a Public Financial Enterprise.
Role of Public Sector Trading Agencies:
* PSU plays a very significant role in promoting India’s export and controlling India’s import of essential commodities in order to ensure fair public distribution system in the country. * PSU also plays a very important role as a trading arm of govt. of India dealing domestic as well as international trade. * PSU’s ensure supply of essential commodities as well as exercise moderating influence on price of essential commodities. * PSUs mainly trades in agricultural products, coal and hydrocarbons, fertilizers, minerals and metals, engineering products and equipments. There are six PSUs operating in India. They are:
State Trading Corporation of India Limited (STC): STC was set up on 18th May, 1956, primarily with a view to undertake trade with East European Countries and to supplement the efforts of private trade and industry in developing exports from the country.
* STC has played an important role in country’s economy by arranging imports of...