Migration, Identity, And Soverignty

Question 1

Low tax states and TNCs

Answer 1

Globalisation has caused a growth of low-tax state regimes
1- glob has encouraged the flow of capital + Increased in FDI and govs have removed restrictions on foreign ownership —> enabled companies to relocate to countries offering low tax regimes as a haven for profits
2- the improvement in productivity + tech transfer that arises from FDI benefit their company and believe profit should not be taxed multiple times
3- NGOs raise objections as it undermines development and poverty reduction

Question 2

Arguments for and against tax havens

Answer 2

FOR -
•Most govs and IGOs have accepted the emergence and are sympathetic towards FDI cos of productivity gains and tech transfer that arise from FDI
•it can help countries by employing more business which lowers unemployment + helps get tax
AGAINST -
•concerns that large businesses are deliberately seeking ways of avoiding taxes, which causes gov income problems
•companies who avoid tax are free riding - they are taking benefits

Question 3

Growing inequalities

Answer 3

Inequality is threatening sustainability of global economies system
•within developed + emerging economies, some face poverty + unequal access to education
•chronic diseases like CHD, diabetes, are linked to poor diet
•in developing countries with youthful pop, lack of jobs will cause political + social strife

Question 4

Characteristics of groups of nations

Answer 4

Tax benefits
Better relations
Same common goal
Political goals
•NAFTA: free trade, common tariff system
•common market=free market, common tariff system + free movement of people
•Economic union=free trade, common tariff system, free movement

Question 5

How can membership of trade blocs stimulate econ development?

Answer 5

•Economies of scale
•competitive advantage - countries can concentrate on developing specific industries
GROUPINS: NAFTA, EU, WTO, BRIC, G8, G20, WORLD BANK, IMF

Question 6

Increasing econ integration between countries

Answer 6

FREE TRADE AREAS: members abolish tariffs + quotas on trade
CUSTOMS UNIONS: member countries operate a tariff on goods coming into region
COMMON MARKETS: as customs unions, but with freer movement of labour + capital
ECON UNIONS: members required to adopt common policies in areas such as agric, Fisheries, transport

Question 7

IGOs and managing environmental problems facing the world

Answer 7

• IGOs have been involved with developing laws for maintaining oceans —> such as UN convention on law of sea
• IGO responsibility also includes management of Antarctica as a continent of peace + security (global commons)

Question 8

Challenges to national identity + influences of world culture

Answer 8

Many UK based companies are now foreign owned
•Westernisation is dominated by US cultural volumes, large TNCs, international orgs, retailing and environment
•The development of global communications allows dominant aspects of North American culture to dominate cultural melting pot —> through TV, film, music