Last updated on May 17th, 2021 at 03:25 pm
Companies around the world are drawn closer together than before by economic globalization. Globalization has brought about an increasing number of multicultural business relationships and exchanges. We are fortunate to be in an era that offers us opportunities to embrace diversity through establishment of mutually beneficial teamwork with different countries.
Preparing for Difficulties
To establish positive relationships, we must prepare in advance for difficulties that arise with any type of business relationship. Multicultural business relationships bring additional factors that may further complicate the relationship, including differences in language, belief systems, political systems, laws & regulations and cultural differences. An effective method to prepare for these issues is to create a set of international arbitration clauses in the contracts.
What is International Arbitration?
International arbitration by itself is a method of “resolving disputes between States, individuals, and corporations in almost every aspect of international trade, commerce, and investment”. In order to prepare for possible difficulties and conflicts that lead to dispute, a set of international arbitration clauses are to be established. These clauses will serve as the official instructions for how the arbitration will be carried out. In developing international arbitration clauses, favoritism and cultural biases must never be shown or influence the creation. Willingness to adapt to different policies and procedures is expected from each party and their respective attorneys. In addition, issues such as what language the arbitration is to be in, who the arbitrators will be, and where the arbitration will take place must be discussed and finalized once all parties come to an agreement.
Companies engaging in international business relationships must plan ahead to prepare, in multiple languages, for the localization of content and exchange documentation detailing business and legalities. International arbitration forces all companies in a business relationship to respect other cultures, in order to create an arbitration clause that is all-inclusive to the cultures involved. The goal is to make multicultural business dealings a welcome experience for all, and to facilitate conflict resolutions before going to trial.