8B.6 Globalisation and the growth of states Quiz: Pearson Edexcel Geography, Unit 11

The 20 questions

1. Which type of state regime has globalisation encouraged to attract TNC profits?

   • Protectionist regimes
   • High-tariff regimes
   • Command economy regimes
   • Low-tax regimes

2. Which groups does 8B.6a say low-tax regimes provide homes for?

   • Local schoolchildren
   • Wealthy expatriates
   • Public sector workers
   • Subsistence farmers

3. How have most governments and IGOs historically responded to the emergence of tax havens?

   • Abolished financial flows
   • Accepted them
   • Outlawed them completely
   • Imposed heavy sanctions

4. What is growing global inequality recognised as a major threat to?

   • Border security controls
   • Global transport networks
   • Cultural homogenisation rates
   • Economic system sustainability

5. Which examples does 8B.6c give of states that have promoted alternative economic models?

   • Iceland or Rwanda
   • Singapore or Japan
   • Taiwan or Ukraine
   • Bolivia or Ecuador

6. Which financial policy process helped drive the emergence of tax havens worldwide?

   • Capital market deregulation
   • Trade tariff increases
   • Currency pegging policies
   • Industry nationalisation

7. Which group has raised major objections to the widespread acceptance of tax havens?

   • Sovereign wealth funds
   • Central bank boards
   • Non-governmental organisations
   • Transnational corporations

8. Calculation: a TNC pays 15 million dollars in tax on profits of 100 million dollars in its home state. What is its effective tax rate?

   • 15%
   • 150%
   • 1.5%
   • 85%

9. What term describes states that offer low corporate tax rates to attract TNC profits?

   • Export processing zones
   • Trade blocs
   • Protectionist states
   • Tax havens

10. What facilitates the easy movement of corporate profits into low-tax states?

    • Import quota restrictions
    • Deregulated capital markets
    • High corporate tariffs
    • Fixed exchange rates

11. Which South American nation has promoted alternative economic models to reduce global inequality?

    • Bolivia
    • Argentina
    • Chile
    • Brazil

12. Which group of organisations typically objects to the growth of tax havens?

    • IGOs
    • TNCs
    • Governments
    • NGOs

13. What is recognised as a major threat to the sustainability of the global economic system?

    • Tax haven expansion
    • Growing global inequalities
    • Deregulation of trade
    • Rising expatriate numbers

14. How have most governments and IGOs responded to the emergence of tax havens?

    • Sanctioned them
    • Accepted them
    • Ignored them entirely
    • Banned them

15. Which South American nation is cited in the specification as promoting an alternative economic model?

    • Argentina
    • Chile
    • Bolivia
    • Brazil

16. Tax havens primarily provide low-tax homes for which group of people?

    • Seasonal workers
    • Aid workers
    • Wealthy expatriates
    • Economic refugees

17. What financial process under globalisation has directly encouraged the growth of low-tax havens?

    • Trade tariff increases
    • Capital market deregulation
    • Debt relief schemes
    • Fixed exchange rates

18. What drives some governments to promote alternative national economic models?

    • Declining expatriate movement
    • High import tariffs
    • Decreased TNC profits
    • Growing global inequalities

19. A TNC books 240 million dollars of its 400 million dollars in total profit in a low-tax state. What share of its profit is booked there?

    • 40%
    • 240%
    • 60%
    • 16%

20. What do low-tax regimes primarily act as havens for?

    • Foreign aid
    • Sovereign debt
    • Trade tariffs
    • Corporate profits

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