Essay On International Commercial Arbitration

686 Words3 Pages
It has become common to speak of international commercial arbitration since the early 20th century. Development and growth in the interdependence of the global economy and forces of globalization has help boost the concept of international commercial arbitration. Today, economic and business experts, states the fact that no business is purely local, as even the smallest local firms get affected by global events. Globalization has helped eliminate barrier and people are more connected than they were even before. Advanced technology and transportation has also fueled and speed up the connectivity process. The migration of idea, artifacts, and people has been a constant part of human history but what happens to be new is the rapidity with which such migration are now accomplished and the relative weakness of barriers to them. Together with the reduction of barriers comes a global competition and in today’s world all business are international. Globalization means more competition, which means that a nation’s investment, production and innovation are not limited by national borders. No longer can an economic or political change in one country occur without causing effects throughout the world market. For example a terrorist attack in New York will affect the international stock markets. A civil war in Africa will push up the price of commodities in the international market. The intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa This has become possible because of the technological infrastructure provided by telecommunications, information system, microelectronic equipment’... ... middle of paper ... ...ipulate in their dispute, when it occurs, through international commercial arbitration. 2.2.5. Difference between a domestic arbitration and international arbitration The modern view is that arbitration is governed by the law of the place in which it takes place. Therefore, in that sense, all arbitration taking place within a State is a domestic arbitration in that State. However, many States draw a distinction between arbitrations that are considered to be domestic and those that are considered to be international. One of the consequences is that the dispute must be international in nature, which is, it should be between parties from two different national laws. Another one is to consider the nature of the transaction; does it involve a transaction that is either in a State other than the place of arbitration or that takes place in two or more States.
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