What is a Nation State?
A political entity that has sovereignty over it’s territories
3 Factors determining national borders?
Physical geography
Historical Events
Colonial History
4 Factors that fuel contested borders?
Desire to unite culturally (Serbia, Armenia)
Gain access to resources (Greenland)
Absorb other territories (Russia)
Superpower involvement
7 Reasons why borders are contested?
Lack of clarity (E.g No mountain range)
Debate whether a border exists (Taiwan)
Colonialism (Africa)
Natural resources (Greenland)
Political boundaries splitting similar groups (North & South Korea)
Historical decisions (India-Pakistan)
End of the USSR
What is Nationalism?
The shared feeling for a special, significant geographical area
6 Reasons for post-Colonial conflict?
Ethnic conflicts (Bosnia)
Colonial favouritism (Bantu- Rwanda)
Colonial borders (Iraq)
Bad political leadership (Nigeria, Sudan)
Corruption (Sudan)
External debt burden (Ethiopia)
5 Aspects of the “New international economic order”
Countries can:
Regulate and control TNC’s in their territory
Nationalise property on their terms
Set up associations of primary commodities, like OPEC
Able to benefit from stable and fair prices for materials
Free economic and technological assistance
How has globalisation created tax havens?
Increased the movement of capital between countries
Companies move to countries with low tax regimes
Countries act as tax havens for their profits
3 Services tax havens offer?
Permit business transactions to take place in secret
Encourage tax avoidance
Evasion of financial regulations
3 Examples of tax havens?
British Virgin Islands
Ireland
Switzerland
3 Positives of tax havens for governments
Creates tax revenue (In the tax haven)
Attracts FDI
Diversifies economy
3 Negatives of tax havens for the government?
Loss of tax (Outside the tax haven)
Economic inequality
Regulatory challenges
5 Positives of tax havens for TNC’s
Reduces tax liabilities
Privacy
Asset protection
Ease of business startup
Legal benefits
4 Negatives of tax havens for TNC’s?
Reputation
Complex compliance
Economic impact
Potential changes in the law
4 Benefits to individuals of tax havens?
Increase in wages
Asset protection
Lack of taxes
Lower levels of unemployment
3 Negatives to individuals of tax havens?
Cost of living
Increasing inequality
Fall in quality of public services
3 Key principles of capitalism?
Land resources and capital are privately owned
Majority of people work for a wage
Markets mediate between producers and consumers