State
A territory over which no other country holds power or sovereignty, UN recognises 196 states
Nation
A territorialised group of people who may lack sovereignty eg. Scotland and Wales
Dependent territories/dependencies
Have autonomy for many aspects of governance but lack full sovereignty
3 main ways borders are created
1) Natural borders
2) Historical borders
3) Political/colonial borders
Natural (physical) borders
Physical geographical features that create natural obstacles to movements of people eg rivers, mountains, seas, lakes
Scramble for Africa
1884/5- 14 countries met at a conference in Berlin and divided Africa into 50 countries through geometric boundaries, and turned into colonies by the European powers
Problems with political/colonial borders
They did not take into account any tribal or linguistic boundaries, leading to ethnic conflict in some countries eg. Rwanda
Contested borders
Conflict or geopolitical strife that occurs when a boundary dissects an ethnic group’s homeland
Nationalism
The belief that the interests of a nation are more important than those of another nation
Reasons for empires losing territories
-post war bankruptcy
-countries less dependent on colonies for raw materials
-resistance to colonial rule in colonies
-growing concern in injustice of colonial rule by young Europeans
Neocolonialism
The indirect actions by which developed countries exercise control over developing countries
‘Wind of change’
The 1960s, when most countries in Africa gained post-colonial independence
Post-colonial conflict
Decolonisation rapidly caused and left a power vacuum in a former colony
Tax havens
A country/territory with a nil or low rate of corporation tax eg Bermuda
How are low tax states created?
Globalisation has led to deregulation and privatisation, allowing capital to be transferred freely and ownership to be shifted towards TNCs
TNC opinion on Tax Havens
Attracted as they pay lower taxes, however can damage brand/reputation if people don’t think they have integrity/corporate responsibility
IGO opinion on tax havens
More accepting of tax havens and tax avoidance due to the economic boost and growth they deliver
NGO opinion on tax havens
Resisted deregulation and globalisation and have attempted to retain/regain control
National governments on tax havens
Governments seek investments from TNCs to generate employment and wealth, so set their own tax rates to attract them
Positives of tax havens
-Huge tax advantages to companies and wealthy people
-Allows income to be earned in states where the only other alternative is seasonal tourism
Negatives of tax havens
-some associated with political/economic instability and corruption
-low public perception that can ruin a brand’s reputation
-likely a less secured place to store money over the national government
-reduces money for governments to spend on health, education l