Disputes can arise out of commercial transactions between two or more private parties across national borders, when they invest capital in a joint venture. Litigation in the national courts is one of the methods for resolving such conflicts between two parties. However, international commercial arbitration is another dispute resolution method that is getting quite popular.

Here are a few reasons that lead business owners to Arbitration for dispute settlement.

• Avoid local court procedures – Many companies prefer to avoid local court procedures, when it comes to resolving their conflicts of interests. Local courts usually lead to lengthy procedures that last for a long time. Business owners tend to avoid extended procedures to save their time. Moreover, when arbitration presents that opportunity for them, many opt for this dispute resolution method.
• Quicker verdict – Commercial arbitration provides quicker verdict, which many companies look for. After spending lots of capital and time on a joint venture, private parties look for a time saving process that will resolve their conflicts quickly.
• Cost effectiveness – This dispute settlement method saves a lot of capital for companies by providing quick verdicts within a few hearings. In addition, both private parties may get the chance to determine a budget for the whole procedure, further saving their money.

Additionally, arbitration allows greater control to both parties over the dispute settlement process, increasing the appeal of this method.

However, you should know that it is slightly different from the domestic arbitration with its own standards of ethical conduct, regardless of the country. So when going for arbitration, gather proper information and consult with adept arbitrators.