Migration 8B.6 onwards Flashcards
What is an example of a tax haven and what % is its corporation tax?
Bermuda, 0%
What is an example of a non tax haven and what % is its corporation tax?
Kenya, 30%
What is the application for globalisation increasing the use of tax havens (transport tech)?
Lewis Hamilton moved to Monaco, if you stay a resident for 6 months you can be tax-free on worldwide income
How does globalisation increase the use of tax havens (transport tech)?
Easier for rich individuals to move so population growth so more spending so positive multiplier effect so further investment
What is the application for globalisation increasing the use of tax havens (comms tech)?
Fibre optic cables transfer data at the speed of light
How does globalisation increase the use of tax havens (comms tech)?
Increased flows of info so increased awareness of tax havens so increased flow of capital to tax haven so further growth in related job sectors e.g. finance so growth of specialism and further use of tax haven
What is the application for globalisation increasing the use of tax havens (growth of TNCs)?
Nike in Bermuda
How does globalisation increase the use of tax havens (growth of TNCs)?
Larger market size so bigger target audience and more sales so increased economies of scale so increased profit so encourages use of tax havens by TNCs
What is the application for tax havens benefitting individuals?
Reduce Lewis Hamilton’s income tax
How do tax havens benefit individuals?
Reduce tax liability so more disposable income so more purchasing power and reinvestments into assets which increase long-term wealth
What is the application for tax havens costing individuals?
Jimmy Carr called ‘morally reprehensible’ by Boris Johnson and has suffered from depression since scandal
How do tax havens cost individuals?
May suffer reputational damage - important if known as a public figure as future career can be impacted based on poor public perception
What is the application for tax havens benefitting TNCs?
Nike in Bermuda
How do tax havens benefit TNCs?
Less tax burden so more retained profits which can be used for investment into research and development so more innovation and sales
What is the application for tax havens costing TNCs?
2011 Starbucks boycott - paid no corp. tax on UK sales so reputational damage
How can tax havens cost smaller companies?
Outcompeted by larger businesses as don’t have revenue to invest in tax haven and pay more in corp. tax which limits ability to invest
How do tax havens benefit governments in a tax haven country?
Attract money and people to country which creates jobs due to more spending so more employment and less need to spend on welfare payments so improved gov. budget
What does Africa have the largest amount of (tax havens)?
Capital flight as a % of GDP
What % of corp. tax does Kenya have and how many average years of schooling are there?
30%, 5-6 years
How do tax havens cost governments in non-tax haven countries?
Experience capital flight so less tax revenue and less budget to spend on education so country’s development is held back
What is the case study for using increased gov. intervention as an alternative economic model to capitalism?
Sweden
What % of the population in Sweden pay the top rate tax (increased gov. intervention as an alternative to capitalism)?
15%
How many children in Sweden get free school meals (increased gov. intervention as an alternative to capitalism)?
All children (more budget spent on social development)
What is the case study for prioritising community as an alternative to capitalism?
Buen Vivir
Which country has adopted the Buen Vivir economic model (prioritising community as an alternative to capitalism)?
Bolivia
How does small scale production demonstrate Buen Vivir (prioritising community as an alternative to capitalism)?
Local production so more social responsiblity as managers are close to production and more environmental responsibility
What is the case study for having economic democracy as an alternative to capitalism?
John Lewis Partnership
How does economic democracy provide an alternative to capitalism?
Workers are given shares in the company so receive voting rights and dividend payments so more influence in the business
How many members did the UN have in 1945 compared to now?
51 in 1945 compared to 193 now (grown in importance due to increased no. of members)
Give an example of an environmental, socio-economic, and political branch of the UN
Environmental: IPCC
Socio-economic: World Bank
Political: UNSC
(Grown in importance due to growth in range of branches of the UN)
What is the case study for economic sanctions as a form of UN intervention?
Iran
In what year did the UNSC impose sanctions on Iran which banned the supply of nuclear-related materials (UN intervention)?
2006
Why did the UNSC impose sanctions on Iran (UN intervention)?
Believed Iran was enriching uranium to produce a nuclear weapon
Why were economic sanctions a success in Iran (UN intervention)?
Pushed value of Iran’s currency to record lows which drove away foreign investors
Why were economic sanctions a failure in Iran (UN intervention)?
Iran increased its uranium production and tensions have increased
When did inspectors find evidence of uranium enrichment to the quality needed to create a nuclear bomb (UN intervention)?
Feb 2023
What is the case study for military action as a form of UN intervention?
DRC conflict
How many nations were involved in the 1999 DRC war (UN intervention)?
6 nations
How many UN peacekeepers are still in the DRC in 2023 and how are they helping (UN intervention)?
18,000, protecting civilians and supporting gov. in its stablisation and peace consolidation efforts
Why was military action a success in the DRC (UN intervention)?
Situation may have been worse without UN involvement e.g. African world war
How many years of UN intervention were there in the DRC and when did the conflict end?
20 years, 2021
Why was UN intervention a failure in Rwanda?
Peacekeepers weren’t given a mandate to intervene in the conflict which led to the death of 800,000 Rwandans
What are the 2 case studies for unilateral action?
UK intervention in Sierra Leone (failed state) and Russia’s annexation of Crimea
What year was the civil war in Sierra Leone (unilateral action)?
1991
How many troops did the UK send to Sierra Leone after UN intervention failed (unilateral action)?
1,200
What year did the Sierra Leone civil war end as a result of UK intervention (unilateral action)?
2002
How did the UK’s unilateral action in Sierra Leone impact the UK’s geopolitical relations and Sierra Leone’s political stability?
Viewed as highly successful intervention which improved Britain’s standing in international geopolitics, improved stability in Sierra Leone
What year did Russia annex Crimea and what year was Ukraine invaded (unilateral action)?
2014, 2022
What impact has Russia’s invasion of Ukraine had on geopolitical relations?
Friction between Russia and NATO - EU, UK, and USA have all supplied weapons to Ukraine which caused threats from Russia
What is the aim of the WTO?
To facilitate free trade by removing trade barriers and providing a platform for trade negotiations
What is the WTO’s influence on globalisation?
Increases flows of goods and services
How does the WTO perpetuate western capitalism?
Less trade barriers so more neoliberal capitalism as it increases global economic efficiency
How does the WTO maintain existing patterns of power?
Free trade benefits developed more than developing countries
What is the problem with the WTO?
Free trade often ignores environmental conditions by enabling imports from countries with the least environmental protection
What is the aim of the IMF?
Promotes global economic stability by providing low-interest loans for nations in financial crises
What is the IMF’s influence on globalisation?
Privatisation increases the flow of capital
How does the IMF perpetuate western capitalism and maintain existing patterns of power?
IMF loans have conditions attached that promote neoliberal capitalism e.g. SAPs
What is the problem with the IMF?
SAPs
What is the aim of the HIPC (IMF initiative)?
Bringing debts down to manageable levels for the world’s poorest countries by giving low interest loans or writing off a part of the debt