What is international arbitration, and why is it so widely used for cross-border disputes?

International arbitration is the use of arbitration to resolve disputes that cross national borders — for example, between companies in different countries, or arising from international contracts and transactions. It is the dominant method for resolving cross-border commercial disputes, and for good reason. It gives the parties a neutral forum, avoiding the concern that one side would have a home-court advantage in its own national courts. It allows them to choose arbitrators with relevant international experience and to agree on the governing rules and language. Most importantly, it produces awards that are enforceable across borders far more reliably than national court judgments, which is often the decisive advantage in an international deal.