t changing dynamics of the business pattern and emerging new trade practices, arbitration is increasingly becoming crucial to resolve international trade disputes.
In the rapid globalization and swiftly transforming equations of international business, the resolution of international commercial disputes has become imperative for the overall goodwill of the global business commitments. International commercial arbitration has truly become a vital tool to resolve international commercial dispute in a more amicable manner.
In the global businesses, the non market factors, having direct and indirect impact on the overall performance and operation of the firms, have become crucial. ‘These are characterized by 4Is: issues, institutions, interests and information’1 (Baron, p2). They are the socio-political environment within which the firm has to operate. Issues, which might clash with the operations and performance of the company, must be addressed urgently. The institutions are defined as bodies which are affected by the issues, which may be local or national in character. Interests are the personal stake of the individual or groups, in the issues. Lastly the information relates to the various facts and fictions of the issues and the actions taken thereon. As a result, international commercial activities like sales and manufacturing, franchising, global investments, banking, constructions etc. may result in some sort of disputes that need to be resolved through globally acceptable norms.
The globalization has given a new perspective to the business which needs to look beyond the local interests and operate business on a wider platform based on common goals and universal value system. The commercial disputes of the global business across countries become crucial for the smooth operations as the legal recourse to resolve them are complex and often time consuming. It is for these reasons that businesses which expand their operations globally like to work within