CorelDraw is vector based. It'd be more comparable to Illustrator then Photoshop.
Corel Photopaint (part of the Corel Graphics suite) is the equivelent to Photoshop which is raster based.
Others can describe the differences, such as HERE! Use a raster based program to touch up photographs or scanned art or other images. Use vector based program for creating shapes and text. I like the Corel graphics suite b/c it has both programs and they work really well with each other.
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