Topic 1 - Setting the Scene

Question 1

Reverse Globalisation

• Offshoring
• Nearshoring

Answer 1

Reverse Globalisation

• Offshoring: moving activities to another country to save costs
• Nearshoring: transfer of business processes to companies in a nearby country

Question 2

Basel Committee on Banking Supervision (BCBS)

Answer 2

BCBS

All banks are under the supervision of the BCBS.

BCBS = responsible for setting out a resilient & credible regulatory framework specifying capital requirements

Basel II - 2004

Basel III - further reforms in 2017

Question 3

The World Trade Organization (WTO)

Answer 3

WTO

• Formed 1995, 164 countries, 16 multilateral agreements

It provides:

1) forum for negotiating agreements aimed at reducing obstacles to int. trade + ensuring a level playing field. Contributes to economic growth & dev
2) legal & institutional framework for the implementation & monitoring of these agreements + settling disputes

Question 4

The International Chamber of Commerce (ICC)

Answer 4

ICC

• 6m companies, chambers of commerce & business associations, 130+ countries

Fundamental mission = promote open international trade & investment, and help business meet the challenges & opps of globalization.

3 main activities

1) Rule setting: become fabric of int trade. “unrivalled authority in making rules that govern int trade”
2) Dispute resolution: ICC International Court of Arbitration
3) Policy advocacy: anti-corruption, banking, ESG, digital economy etc

Question 5

What is the WTO primarily concerned with?

What is the fundamental mission of the ICC?

Answer 5

1) Lowering of trade barriers
2) Promoting open international trade and investment