Globalisation and Sovereignty Flashcards
(47 cards)
What impact has economic globalisation had on state control over economies?
Economic globalisation has removed state control over national economies.
How do MNCs challenge state economic power?
The rise of MNCs, which operate across multiple borders, allows private entities such as Apple and Amazon to hold substantial economic power, often exceeding that of states.
How can MNCs influence domestic policy?
MNCs provide significant jobs and taxes to countries yet can threaten to move production elsewhere, allowing them to influence domestic policy in their interests and reduce government control over the economy.
What is an example of an MNC influencing domestic policy in Ireland?
Apple set up its European headquarters in Ireland in exchange for favourable tax arrangements.
How did Apple benefit from Ireland’s tax policy?
Apple benefited from Ireland’s 12.5% corporate tax rate and negotiated additional tax breaks, resulting in an effective tax rate as low as 0.005% in some years.
What was the result of Apple’s tax deal with Ireland?
The arrangement led to a legal battle with the European Commission, which ordered Ireland to recover €13 billion in unpaid taxes.
What did the Apple-Ireland case demonstrate?
It demonstrated the power MNCs wield over national economic policy.
What is an example of MNC influence on UK policy?
In 2025, the UK Government made changes that benefitted multinational car companies including Volkswagen and Stellantis.
Why did the UK government make changes in 2025 to support car manufacturers?
They were concerned that the MNCs might stop manufacturing in the UK and that this would result in the loss of thousands of British jobs.
What specific policy did the UK government relax for car companies?
The government relaxed the Zero Emission Vehicle Mandate, so car manufacturers were no longer forced to ensure that a high percentage of the vehicles made in the UK were electric.
What does the 2025 UK policy change demonstrate about MNCs and sovereignty?
It demonstrates how multinational corporations can have a significant impact on national policy due to their economic strength, showing that the control/sovereignty that governments have over their economies is limited.
What role do institutions like the IMF and World Bank play in economic globalisation’s impact on state sovereignty?
They often make economic aid conditional on countries adopting free-market policies, especially in the global south, pressuring states to change economic structures.
How has globalisation affected states’ ability to act unilaterally?
Globalisation has increased state interdependence, meaning many challenges now cross borders and require cooperation through international institutions instead of unilateral action.
What is an example of global cooperation to address climate change?
The Paris Agreement, where countries collectively agree to reduce emissions to tackle climate change.
How did the COVID-19 pandemic demonstrate the need for global cooperation?
The pandemic showed the importance of coordinated vaccine distribution, travel restrictions, and economic recovery plans because individual countries’ efforts could be undermined by others due to global travel and interconnected economies.
Why does economic globalisation increase the need for political cooperation?
Because interconnected economies depend on shared financial regulations to prevent and manage crises like the 2008 financial crisis, requiring global coordination through institutions such as the IMF and G20.
How does interconnectedness affect state sovereignty?
It pressures states to surrender parts of their sovereignty, transferring decision-making to international bodies like the WHO or UN, which enforce collective decisions that can override national actions.
What is the consequence of global governance frameworks on national sovereignty?
National sovereignty becomes increasingly subordinated as decision-making shifts to global institutions to manage shared challenges.
How has political globalisation affected state autonomy?
Political globalisation has created international frameworks through IGOs like the UN, ICC, and EU that set binding rules limiting state autonomy on issues such as trade, human rights, and conflict resolution.
What can happen if a state breaks international rules set by IGOs?
Their sovereignty can be justifiably infringed upon to uphold international rules and norms.
What happened when Greece breached the EU’s Common Agricultural Policy in 2015?
Greece was sanctioned by the EU and required to repay €425 million in misused subsidies, showing how supranational institutions can limit state sovereignty.
What did the UN do in 2011 in response to the Libyan Civil War?
The UN sanctioned a military intervention in Libya under UN Security Council Resolution 1973 to protect civilians from human rights abuses by the Gaddafi regime.
What did UN Security Council Resolution 1973 authorise?
It authorised a no-fly zone and “all necessary measures” to protect civilians.
Who primarily conducted the military campaign in Libya?
The international military campaign was primarily conducted by NATO forces.
