Geopolitical risk, resilience and compliance in international markets

Introduction

Please note that this is a preliminary course description. The final version will be published in June 2027.

International business operations face a complex web of regulatory, strategic and operational challenges. Navigating responsibly requires compliance with existing regulatory frameworks, as well as preparation for and interaction with multiple risk factors along environmental, social and political dimensions. Current regional and global uncertainties place great pressure on corporations to ensure future viability, particularly when operating in international markets. Global integration, international trade, and capital flows impact all areas of society. At the same time, we see increasing global rivalry and competition, with a growing use of sanctions and various types of restrictions.

This course aims to provide students with an understanding of the need for regulation, the rationale behind the current (global/regional/national) regulatory framework, the pressures it is under, and tools for navigating this complex environment responsibly.

The course covers:

• Market regulation ("why regulation") and the structure of the current regulatory regime, legally and institutionally
• The effects of regulation
• Managing uncertainty and risks related to political risk and regulatory changes

The course will emphasize key challenges that are particularly important in today’s global economy:

• International trade and the most significant international regulatory institutions
• Security
• Sustainability
• Regulatory frameworks and the need for compliance

Course content

International Trade and Institutions:
The course provides an introduction to comparative advantages, economies of scale, and market power as sources of international trade. We discuss the historical background and development of various trade institutions and regimes, including bilateral and multilateral trade agreements, and the WTO. 

Political Risk and Security:
Global rivalry has led to increased use of economic measures to achieve political objectives. There has been a significant rise in the number of sanctions, export controls, and ownership controls. The course introduces how the new geopolitics and geoeconomics create challenges and constraints for businesses and how firms can manage political and geopolitical risks. 

Regulatory Risk:
Regulatory and compliance risks, such as sanction regimes, anti-money laundering and anti-corruption rules, must be navigated in an international context. The course provides an overview over such risks and corresponding mitigating measures.

Sustainability:
Climate change and loss of biodiversity will impact economic activity. In this part of the course, we examine the background for the UN Sustainable Development Goals and reflect on how they represent both opportunities and threats. We will also analyse sustainability at the corporate level, including challenges with effective implementation.