The process of arbitration is often chosen by parties to resolve disputes arising in international commerce because it permits them to resolve differences in a neutral setting outside the domestic legal system of any particular country. As neither party to an international commercial agreement wishes to be at a disadvantage if a dispute arises with respect to that agreement, arbitration, whether on an ad hoc basis or through an international arbitration institution such as the Court of Arbitration of the International Chamber of Commerce (ICC), the International Centre for the Settlement of Investment Disputes (ICSID), or the World Arbitration Institute associated with the American Arbitration Association (AAA), offers the opportunity to resolve the controversy in a setting that the parties believe will be fair to both sides. Moreover, arbitration proceedings are often more flexible, less expensive and less time-consuming than ordinary litigation.
Robert B. von Mehren,
The Enforcement of Arbitral Awards under Conventions and United States Law,
Yale J. Int'l L.
Available at: http://digitalcommons.law.yale.edu/yjil/vol9/iss2/5