A judgement of a national court of any country will not be enforced in other country automatically. In contrast with a judgement, an award of an arbitral tribunal will be enforceable in other county if such two countries are members of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Because of this, arbitration is normally provided in the international commercial contracts for the last resort for settling disputes.
However, the business persons should remember that arbitration is costly, takes time, keeps people who otherwise may produce other benefit and put the disputing parties in a contentious situation. If arbitration is unavoidable, the followings are the tips:
Here, Parties should understand that arbitration and litigation are like a gambling for which no one can predict the result correctly. A dispute should be avoided in the first place by use of a Dispute Board (DB) and if the parties failed in avoiding disputes and failed in achieving settlement upon DB decision, parties should try mediation before commencing arbitration or litigation.