Role of Alternate Dispute Resolution in International Business

Role of Alternate Dispute
Resolution in
International Business

Table of Contents
Introduction..................................................................................................................................... 2
Main Body....................................................................................................................................... 2
International institution: ............................................................................................................. 2
Rules made by international institutions for international business............................................6
Role of Alternate Dispute Resolution ......................................................................................... 8
Rules of International Institutions in Alternative Dispute Resolution.........................................10
Conclusion .................................................................................................................................... 15
................................................................................................................................................. 16
................................................................................................................................................. 16
................................................................................................................................................. 16
References..................................................................................................................................... 16
·Introduction
The best option nowdays to resolve issue conflicts and issues between both parties and enforcing
decision in their interest not being litigation is Alternate Dispute Resolution. It is generally a
practice to resolve dispute without presenting in court. It reforms entire procedure and strategies to
resolve issues among parties which take place externally out of governmental authorities premises .
In this context one of commonly used tool of ADR are mediation, arbitration, conciliation,
negotiation etc. Every factor of this regulation states certain famous features which enables the
people to evaluate adequate remedy with regards to dispute in outer location of classical tribunal
pleading regulated by distinct regulations1. For example- Under the process of negotiation
conducted between parties , there is no interference of third person resolving conflicts unlike other
tools of ADR like Mediation and Conciliation where other person can intervene regarding
promotion of friendly agreement among such people. But on other hand arbitration has vital
importance of outsider intervention known as arbitrator who renders award which binds both the
party whereas conciliation and mediation is regarded as tool of ADR where decisions laid down by
third individual does not hold any importance in the eyes of parties. Its positive impact are that it is
fast in laying decision, holds secrecy about the parties and is flexible in nature. The public tribunals
in some cases reviews admissibility of such instruments used to lay decision. Only in some cases
their orders are challenged in court regarding its decree and award in case parties in agreement
being valid are complied under it.
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·Main Body
·International institution:
The international institutions are the organisations at the global level. The main work of
international organisation is to provide framework of rules and regulations that are followed by the
countries in the world. The rules and regulations made by the international system are related to
global subject matter like environment, free trade, defence, etc. The international institutions
are formulated after the great depression and world war II. The international organisations are also
known as Supranational Political Bodies. The internally organisation connects the entire world
from an universal code of rule. It tales its decisions by the votes of the member countries2. It also
discusses about the terrorism, global health and trade. The importance of internation institution is
that it helps in maintaining peace and order among the countries of the world. It also aids in
decreasing the war like situations all over the world. There are various international institutions like
WTO, UN, UNESCO, ICC, ICJ , EU, etc. Some of these institutions are describes below as follows-
1) United Nations-
It is an international organisation setup in 1945. presently, it has 193 members. The rules related to
UN is specified in UN Charter which governs the operations and member countries of UN. Its main
activities includes to maintain peace and order, security, protects human rights. It also works to
promote the sustainable development all over the world. There are six main organs of UN namely
the General Assembly, Security Council, Trusteeship council, UN Secretariat, International Court of
Justice and Economic and Social Council. The general assembly is responsible for making policy
decisions for UN. Further, there are six main committees in order to form the laws and discuss about
the current problems in the world. The decisions are taken by simple majority in the general
assembly. The tenure for the President of General Assembly is for one year. The main
responsibility of Security Council is to maintain security and peace at international level. There are
15 member states , out of which only 5 members are permanent in Security Council. The permanent
members include China, Russia, United Kingdom, France and United States. Moreover, the
permanent members enjoy the veto power. The veto power is the power that enables the permanent
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members to reject any resolution made in security council. The most undemocratic part in UN is the
veto power as it does not provide equal powers to all the member countries of UN. Moreover, the
Economic and Social Council has 54 members. It elections held in every 3 years. Its main aim is to
promote sustainable development all over the world. Moreover, the Trusteeship Council was
established in 1945 by the UN Charter. The trusteeship council was formulated after the ceasure of
League of Nations in 1946. Further more, the International Court of Justice was established in June
1946. It came into existence after the disposal of Permanent Court of International Justice. The
Secretariat is also one of the main organ of UN. It is headed by the Secretary General who is
appointed by the principal organs of UN3. The members of staff of Secretariat is recruited at global
or local level. The main work of the employees is to ensure the smooth functioning of all the organs
of the UN. They must also ensure the security all around the globe. They work on the application of
the policies that are formulated by UN. They make sure that all these policies are efficiently
working in all the member countries of UN. There are duty stations on which the staff of Secretariat
works.
2) UNICEF-
The United Nations Children's Fund was established by the General Assembly of UN in 1946. it was
originally called as United Nations Children's Fund. It was established after the World War II in
order to provide assistance to children and mothers who are devastated by the war. It provides basic
healthcare and essential faculties to the children and mothers who are affected by the war and
became refugees of war. But in 1950, the work of giving assistance to children and mothers are
extended to the long term goals of UNICEF. In 1953, it was converted into a permanent member of
UN. The members are elected for a tenure of three years.
3) European Union (EU)-
The European Union was established by 1993. There are 27 member countries in EU. The main
goal of EU is to aid its member countries in corpora ting over the political , economical and security
matters. The European Union also aids its member countries in removing trade barriers, to share
common currency and free movement of the member countries in other countries. It also helps in
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