EQ2 Flashcards
a sovereign state
a legally recognised government that exerts sovereignty over a territory
national boarders
a geographic boundary, with a a legal status as the recognised limit [or start] of sovereignty over a territory
enclaves
are parts of one sovereign state surrounded by another sovereign state
legitimacy
is the right of a state to govern, and the acceptance of a nation of that right
empire
territory beyond a nation states boarders that has been taken by force, or purchased in some cases, over which the nation sate has direct control and sovereignty
a proxy war
is one fought by two sides, who are each supported by more powerful, opposing nation states or superpowers. The more powerful nation states do not directly engage each other in conflict
decolonisation
the process of granting independance to former colonies
imperial core countries
means the colonial power e.g. Britain as the colonial ruler of India Ghana or Jamaica
cultural heterogeneity
a nation state with diverse ethnicity, and therefore many people from different cultural backgrounds (cultural diversity)
corporation tax
tax paid by businesses, on their profits
expatriates
people from one country e.g. the UK, who live in another country e.g. the Bahamas, sometimes to avoid paying tax in the UK
the global economic system
the dominant capitalist model of free markets, free trade, the profit motive and the dominance of large, global TNCs
characteristics of a ‘tax haven’
- very low personal income tax and corporation tax rates, or no taxes at all
- laws making it very hard to find out which companies are based in the country
- the legal use of shell companies to hide the ownership of companies or assets.
shell companies
businesses that exist on paper, but have no employees or premises
they are used as devices to avoid paying taxes
