Setting The Scene

Question 1

Comparative advantage

Answer 1

Logical extension of specialisation and division of labour, generating higher overall output and wealth

Question 2

Sustainability

Answer 2

A process by which companies manage their financial, social and environmental risks, obligations and opportunities

Three Ps- people, planet and profit

Question 3

Basel committee on Banking Supervision

Answer 3

All banks are under the supervision of the Basel Committee on Banking Supervision. The BCBS is responsible for setting out a resilient and credible regulatory framework that specifies capital requirements

As a result of 07-08 global financial crisis, Basel3 requires banks to set aside a greater amount of risk-weighted assets

Ris-weighted assets
An estimate of risk that determines the minimum level of regulatory capital a bank must maintain to deal with unexpected losses

Question 4

ICC International Chambers of Commerce

Answer 4

Has three main activities
Rule setting
Dispute resolution
Policy advocacy

ICC International Court of Arbitration