Glossary
Government review of investment by overseas buyers, allowing a deal in a sensitive sector to be conditioned or blocked on national security grounds.
Recent Trends
from International Transactions
De-globalisation — or, more precisely, the reorganisation of global trade along geopolitical lines — is reshaping cross-border commercial activity. Concepts like friend-shoring (relocating supply chains to allied countries) and near-shoring (moving operations closer to home) reflect a shift from pure cost efficiency towards resilience and political alignment. Bilateral investment treaty (BIT) arbitration, where foreign investors bring claims against host states for expropriation or unfair treatment, has grown steadily — often involving claims worth billions. The proliferation of foreign direct investment screening regimes across the G7 means that cross-border deals increasingly face government review on national security grounds, adding time and uncertainty to transaction timetables.
Governing Law
The legal system chosen by the parties to determine their contractual rights and obligations — English law is the most common choice for international commercial contracts.
Jurisdiction Clause
A contractual provision specifying which courts have the power to hear disputes arising from the agreement.
Sanctions
Restrictions imposed by governments on trade, financial transactions, or dealings with specific countries, entities, or individuals for foreign policy or security reasons.
Export Controls
Laws restricting the export of military, dual-use, and sensitive goods and technology to certain destinations or end-users.
BIT (Bilateral Investment Treaty)
An agreement between two states establishing protections for foreign investors, including rights to fair treatment and compensation for expropriation.
ISDS (Investor-State Dispute Settlement)
The arbitration mechanism through which foreign investors bring claims against host states under bilateral or multilateral investment treaties.
Transfer Pricing
The rules governing how transactions between related entities in different jurisdictions are priced, designed to prevent profit shifting to low-tax jurisdictions.
Force Majeure
A contractual clause excusing performance when extraordinary events beyond the parties' control (war, natural disaster, pandemic) make it impossible or impracticable.