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Critically discuss the advantages and disadvantages of international arbitration, compared with litigation, as a means of resolving international business disputes.

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Freedom to choose a neutral and competent body for dispute resolution is a significant advantage of arbitration over litigation. Each party to an international transaction might be reluctant to submit to the jurisdiction of the other party’s home court. It is commonly believed that such a court could be biased toward the party coming from the state litigated in. Arbitration can thus be seen as a trusted process, whereby a balance is struck between the influence of each contractor, regardless of the composition of the tribunal. In addition, choosing arbitration would be a valuable option if certainty of having a body proficient in a particular field adjudicating upon a dispute is sought. By contrast, resolution of a complex commercial matter in a court might result in a judgment based upon misconception or in a significant delay due to the need for expert evidence. Finality and enforceability of an international arbitral award are two further advantages of the arbit