International commercial arbitration in foreign investment contract disputes

Introduction

Contemporary economic developments have led to an increasing trend towards encouraging foreign investment, not only by developing countries but also by other advanced and growing nations. The resolution of disputes between foreign investors and states has become closely associated with arbitration as the most enduring means of resolving investment disputes. In the latter half of the twentieth century, the world also witnessed a majority of companies crossing national borders for non-national activities, eliminating economic barriers between countries.

Recent developments in the field of international dispute resolution have seen parties in international relations increasingly bypassing national judicial jurisdiction in many countries, favoring arbitration to settle arising disputes. Considering the growing trend of these practices towards applying national law to the originally designated judge, even in relationships with an international character and to avoid problems of conflicting international laws, it becomes clear that the best solution to problems in international transactions is one that achieves fairness and simultaneously applies the rules that both parties expect to govern their relationship – this is international commercial arbitration.

Given the increasing importance of international arbitration and its effective role in settling disputes arising from foreign investments, it has garnered the attention of various countries worldwide. Many of them have entered into numerous international agreements and protocols and established various permanent arbitration centers of an international nature.

Significance of the Study

The practical significance of this study lies in providing a number of proposals and recommendations to policymakers and decision-makers, including administrators in high positions and decision-makers in government, as a contribution and providing a future vision of the nature of international commercial arbitration.

The scientific significance can be considered in that this study serves as a source for researchers and students who want to learn more about international commercial arbitration. It can be a starting point for researchers and enthusiasts to conduct further research in this field.

Study Objectives

The study aims to:

Understand international commercial arbitration in investment contract disputes.
Define the nature of international commercial arbitration.
Distinguish arbitration from alternative dispute resolution methods.