Originally from Dispute Resolution Journal

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In the words of the U.S. Supreme Court, arbitration is “an agreement to arbitrate before a specified tribunal, in effect, a specialized kind of forum-selection clause that posits not only the situs of suit but also the procedure to be used in resolving the dispute.”1 But this is not the only definition of arbitration. There are many other definitions of this subject.2

The use of arbitration in trade and business has expanded substantially and has become the norm for resolving commercial disputes. There
are a number of reasons for this. First, the enormous increase in world trade since the Second World War. The second reason is the desire of
the inter-national business community to have neutral and competent tribunals to decide their disputes. The third reason, the ease of enforcement, is more an advantage of international arbitration. Finally, an advantage of using arbitration in the international context is thought to be the avoidance of uncertainties of foreign litigation.3