When a dispute occurs in international commerce, what questions typically need to be answered to resolve the problem? Why do some firms often avoid litigation? What alternatives to litigation are available?

What will be an ideal response?

The four questions that are usually asked in international dispute resolution are: which country's law applies, in which country should the issue be resolved, which technique should be used to resolve the conflict, and how will the settlement be enforced. Because of the costs and uncertainties of litigation, many international businesses seek less expensive means of settling disputes over international transactions. Often business conflicts will be resolved through alternative dispute resolution techniques, such as arbitration. Arbitration is the process by which both parties to a conflict agree to submit their cases to a private individual or body whose decision they will honor. Because of the speed, privacy, and informality of such proceedings, disputes can often be resolved more cheaply than through the court system.