Advantages And Disadvantages Of Arbitration

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The rise in inter-country investment and trade after globalization has made the commercial relationship between businesses, state or government and investors very complex. Further investment by a private capital in any foreign country is now important to maintain international economic relations which are a necessary parameter of growth. Capital in such case flows from place of higher returns and from economies which are more stable and prosperous like developed countries or financial centers to where there is scare capital or where there is a lack of capabilities of a private enterprise to make economic-legal situation of theirs profitable. This is especially necessary today for sustainable development. But it is inevitable in human activities to have conflict where international business or commerce and foreign investment are involved. Now for such cross- border issues arising between them now, one of the best means of resolving it is arbitration. Arbitration is not something new. It is centuries old, with Plato writing about ancient Greek arbitration. Today, arbitration is a standard method for resolving disputes in various industries like construction, investment, commodities, etc where the arbitrators with technical knowledge are
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This type of arbitration is administered by institution from start to end as per framework of the rules. It is better suited to any contingencies that may arise and is very helpful where co-operation of other party is an issue. There are many institutions that offer such arbitration like - The London Court of International Arbitration (the LCIA), The International Court of Arbitration at the International Chamber of Commerce (the ICC) The American Arbitration Association's International Centre for Dispute Resolution (the AAA/ICDR), The Singapore International Arbitration Centre (the SIAC)