Let's analyze the provided passage to understand the impact of globalisation on the state and then evaluate each option to determine which statement is incorrect.

Understanding Globalisation and State Strength

The passage defines globalisation primarily through its economic aspects, such as the movement of capital, goods, labour, and advancements in the communication system across national borders. These economic activities lead to increased interconnectedness globally and have significant impacts on socio-political sectors both within nations and internationally.

A key point raised in the passage is the growing influence of non-state actors, including Multinational Corporations (MNCs), Non-Governmental Organizations (NGOs), and Intergovernmental Organizations (IGOs). Their strong presence is said to have "questioned the supremacy of state sovereignty". This suggests that the traditional power and authority of the state might be challenged or reduced in certain areas due to globalisation.

The passage also highlights that rich states benefit more from globalisation due to their control over the flow of capital, technology, and communication systems. This implies that while some states (the rich ones) might exert control, the overall landscape of economic flows is influenced by factors and actors beyond the exclusive control of individual states, potentially leading to perceived weakness for many states in shaping these global forces.

Analysing the Options and State's Role

The question asks which statement is incorrect regarding the idea that the state has become weak in shaping certain areas. We need to see which of the given areas is not implied by the passage as a domain where the state's shaping power is challenged or weakened by globalisation.

Let's look at each option:

• Flow of capital: The passage explicitly mentions the "movement of capital" as a core element of globalisation. It states that rich states have "superior control over the flow of capital," implying that states' ability to control capital flow is a factor influenced by globalisation and potentially uneven across states. The mention of non-state actors and questioned sovereignty also suggests challenges to state control over global economic flows, including capital. Thus, it is implied that states might be weak in fully shaping the global flow of capital.
• International trade and labour: The passage lists "trade" and "labour" as key economic activities involved in globalisation. The movement of goods (trade) and labour across boundaries is central to interconnectedness. Globalisation involves international agreements, global markets, and the movement of people, all of which can affect a state's ability to unilaterally shape international trade and labour flows within its borders or beyond. The presence of non-state actors like MNCs also influences global trade and labour markets, potentially challenging state control. It is implied that states might be weak in shaping international trade and labour flows.
• Finance: While the word "finance" isn't explicitly used, the passage discusses "economic activities," "movement of capital," and "profit oriented global market." Finance is intrinsically linked to these concepts. Globalisation creates integrated financial markets and international financial flows that can be difficult for individual states to control entirely. Non-state actors like international banks and financial institutions play a significant role, further suggesting potential state weakness in shaping global finance.
• Collection of revenues: The passage discusses economic activities like trade, capital, and labour, the rise of non-state actors, and challenges to state sovereignty in the context of globalisation. However, the passage makes no mention or implication regarding the state's ability or weakness in shaping the collection of revenues (like taxes). While globalisation might indirectly impact revenue collection (e.g., through corporate tax strategies), the passage does not focus on this aspect or suggest that the state's power in shaping revenue collection methods or rates has become weak compared to its weakness in shaping international economic flows like capital, trade, or labour.

Based on the specific information provided in the passage, the impact of globalisation and non-state actors on the state's ability to shape the flow of capital, international trade and labour, and finance is discussed or implied. The state's role in shaping the collection of revenues is not mentioned as an area where it has become weak according to this text.

Conclusion

The passage describes how globalisation, through economic activities and the rise of non-state actors, questions state sovereignty and affects the state's control over areas like capital flow, trade, and labour. The option that is not supported by the passage as an area where the state has become weak in shaping is the collection of revenues.

Therefore, the incorrect statement, based on the provided passage, is that the state has become weak in shaping the collection of revenues.

Revision Table: Key Globalisation Concepts

Additional Information on Globalisation's Impact on the State

Globalisation is a complex process that affects states in multiple ways. While the passage focuses on economic aspects and the challenge to sovereignty by non-state actors, other impacts include:

• Economic restructuring: States adapt economic policies to attract investment or compete globally.
• Cultural exchange: Increased interaction leads to the spread of ideas, cultures, and lifestyles, sometimes challenging national identities.
• Political cooperation and conflict: Global issues require international cooperation (e.g., climate change, pandemics), but also lead to new sources of conflict.
• Impact on Welfare State: Pressure to reduce taxes and regulations to remain competitive globally can affect social spending and welfare programs.
• Security Challenges: Transnational crime, terrorism, and cyber threats require states to cooperate internationally.

While globalisation can constrain state power in certain areas by transferring influence to international markets, institutions, or non-state actors, states also retain significant power and adapt to the global environment. The ability to collect revenues, for instance, remains a fundamental aspect of state power, even if globalisation introduces challenges like tax avoidance, which requires international cooperation to address.