11.4.1
Responses to Global Migration
Tax Havens - Globalisation
Tax Havens - Globalisation
Globalisation has led to the deregulation of capital markets and the emergence of new states. Tax havens are countries where personal and corporation taxes are very low. Monaco and the Cayman Islands are examples of this.
Low-tax business regimes
Low-tax business regimes
- Some states attract TNCs to their country by offering low business tax rates.
- Governments hope that they will prosper as a result of capital flows into their country e.g. the relocation of HQs of some TNCs to Ireland and Luxembourg. Apple, Microsoft and Google all have large operations in Ireland.
- TNCs are attracted by paying lower taxes, but they can damage their brands if people think they don't have integrity or corporate responsibility.
- TNCs won't move to places where they fear they could be nationalised by hostile governments.
Low-tax personal regimes
Low-tax personal regimes
- Monaco is an attractive location for global citizens because of its zero tax rate on income tax.
- Wealthy individuals (or expatriates) may use tax havens.
- F1 driver Lewis Hamilton moved from Britain to Monaco a few years ago.
- The Cayman Islands, Monaco and Bahamas are all tax havens.
Tax avoidance
Tax avoidance
- Tax evasion is illegal. But moving operations to places to benefit from lower taxes is called tax avoidance.
- This loses developed nations a lot of tax revenue.
- Several IGOs (Intergovernmental organisations) like the G20 want stricter regulations on tax avoidance.
- NGOs (non-governmental organisations) also try to raise awareness of the social costs of tax avoidance (worse public services and lower welfare benefits).
Alternative Systems to Capitalism & Globalisation
Alternative Systems to Capitalism & Globalisation
Several political leaders in the developing world have challenged the way in which global capitalism creates inequality.
2008 global financial crisis
2008 global financial crisis
- In 2008, global banks had to be bailed out by governments. Commercial banks had lent too much money to people who could not afford their mortgages. Investment banks then repackaged these failing loans and spread them around the financial system.
- Banks and bankers were not punished for this, but they caused a recession and a global credit crunch, where many individuals and businesses could not borrow money.
- This brought into question the global economic system, which spread risk internationally. The credit crunch was also felt internationally.
Fidel Castro - Cuba
Fidel Castro - Cuba
- Fidel Castro argued against global capitalism arguing that it caused inequality.
- Cuba is a communist state, but it is opening up to globalisation. US tourists, who were previously banned are now being allowed to enter the country.
- Communism and a 'command economy' was tried in the USSR under Stalin. However, there were widespread food shortages and economic performance was worse than in the USA.
Chavez - Venezuela
Chavez - Venezuela
- Hugo Chavez and currently Nicolas Maduro pursued authoritarian and redistributive policies, however, the policy has not worked too well in the long-run.
- In 2013, Venezuela was ranked 179 out of 185 countries on who was the best to trade with.
- In 2015, Venezuela topped the Global Misery Index.
- In 2018, the IMF predicted 1,000,000% inflation in Venezuela, with food shortages widespread.
Morales - Bolivia
Morales - Bolivia
- President Morales of Bolivia has a strongly socialist viewpoint that national wealth (derived from natural gas and minerals) should be shared amongst its people (though not equally).
Western capitalism/globalisation
Western capitalism/globalisation
- Although capitalism and globalisation can lead to inequality and perverse incentives (like those of the banks), it seems to be the best system that has been tested. Other regimes look to have failed.
- But, having some taxes that redistribute and provide safety nets (like pensions, welfare benefits and free healthcare) seems wise.
- China has a similar capitalist model, but it protects Chinese companies and industries more vehemently.
1Tectonic Processes & Hazards
1.1Tectonic Processes & Hazards
1.2Natural Disasters
1.3Natural Disaster Case Studies
1.4Trends & Patterns
2Option 2A: Glaciated Landscapes & Change
2.1Glaciated Landscapes Over Time
2.2Periglacial Landscapes
2.3Glacial Processes
2.4Glacial Landforms
3Option 2B: Coastal Landscapes & Change
3.1Coastal Landscapes
3.2Coastal Erosion & Deposition
3.3Coastal Risks
4Globalisation
4.1Globalisation
4.2Negatives of Globalisation
4.3Global Shift
4.5Culture
4.6Measuring Development
5Option 4A: Regenerating Places
5.1Types of Economies
5.2Function of Places
5.3Regeneration
5.4Regeneration Case Studies
6Option 4B: Diverse Places
6.1Population Structure
6.2Past & Present Connections
6.3Urban & Rural Spaces
6.4Diversity
6.5Urban & Rural Case Studies
6.6Case Study - Tower Hamlets
6.7Case Study - Sturton-le-Steeple
7The Water Cycle & Water Insecurity (A2 only)
7.1Hydrological Processes Global to Local
7.2Influences on the Water Cycle
7.3Water Insecurity
8The Carbon Cycle & Energy Security (A2 only)
8.1The Carbon Cycle
8.2Energy Consumption
8.3Alternative Energy
8.4Growing Demand for Resources
9Superpowers (A2 only)
9.1Superpowers
9.2Hard & Soft Power
9.2.1Hard & Soft Power
9.2.2Emerging Powers - China Rivalry
9.2.3Emerging Powers - Chinese Sources of Power
9.2.4Emerging Powers - Brazil
9.2.5Emerging Powers - Russia
9.2.6Emerging Powers - India
9.2.7Theories of Development
9.2.8Power Case Studies: Chinese One Belt One Road
9.2.9Power Case Studies: Pakistan Nuclear Arms
9.2.10Power Case Studies: OPEC
9.3IGOs, TNCs & Alliances
10Option 8A: Health & Human Rights (A2 only)
10.1Human Development
10.2Role of Governments & IGOs
10.3Human Rights
10.4Interventions
11Option 8B: Migration & Identity (A2 only)
11.1Globalisation & Migration
11.2Consequences of Migration
11.3Nation States
11.4Responses to Global Migration
Jump to other topics
1Tectonic Processes & Hazards
1.1Tectonic Processes & Hazards
1.2Natural Disasters
1.3Natural Disaster Case Studies
1.4Trends & Patterns
2Option 2A: Glaciated Landscapes & Change
2.1Glaciated Landscapes Over Time
2.2Periglacial Landscapes
2.3Glacial Processes
2.4Glacial Landforms
3Option 2B: Coastal Landscapes & Change
3.1Coastal Landscapes
3.2Coastal Erosion & Deposition
3.3Coastal Risks
4Globalisation
4.1Globalisation
4.2Negatives of Globalisation
4.3Global Shift
4.5Culture
4.6Measuring Development
5Option 4A: Regenerating Places
5.1Types of Economies
5.2Function of Places
5.3Regeneration
5.4Regeneration Case Studies
6Option 4B: Diverse Places
6.1Population Structure
6.2Past & Present Connections
6.3Urban & Rural Spaces
6.4Diversity
6.5Urban & Rural Case Studies
6.6Case Study - Tower Hamlets
6.7Case Study - Sturton-le-Steeple
7The Water Cycle & Water Insecurity (A2 only)
7.1Hydrological Processes Global to Local
7.2Influences on the Water Cycle
7.3Water Insecurity
8The Carbon Cycle & Energy Security (A2 only)
8.1The Carbon Cycle
8.2Energy Consumption
8.3Alternative Energy
8.4Growing Demand for Resources
9Superpowers (A2 only)
9.1Superpowers
9.2Hard & Soft Power
9.2.1Hard & Soft Power
9.2.2Emerging Powers - China Rivalry
9.2.3Emerging Powers - Chinese Sources of Power
9.2.4Emerging Powers - Brazil
9.2.5Emerging Powers - Russia
9.2.6Emerging Powers - India
9.2.7Theories of Development
9.2.8Power Case Studies: Chinese One Belt One Road
9.2.9Power Case Studies: Pakistan Nuclear Arms
9.2.10Power Case Studies: OPEC
9.3IGOs, TNCs & Alliances
10Option 8A: Health & Human Rights (A2 only)
10.1Human Development
10.2Role of Governments & IGOs
10.3Human Rights
10.4Interventions
11Option 8B: Migration & Identity (A2 only)
11.1Globalisation & Migration
11.2Consequences of Migration
11.3Nation States
11.4Responses to Global Migration
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