Th4.1: Impacts of Globalisation on Government

Question 1

What are the three impacts of globalisation on the government?

Answer 1

higher taxes / tax avoidance
bribe and lobby
maximise and minimise

Question 2

Higher taxes / tax avoidance

Answer 2

the government may be able to receive higher taxes, since TNCs pay tax and so do the people they employ. however, they could lose out through tax avoidance

Question 3

Bride and lobby

Answer 3

TNCs also have the power to bribe and lobby governments, leading to corruption

Question 4

Maximise and minimise

Answer 4

if the government uses the correct policies, they can maximise the gains and minimise the losses