The first step in any dispute is to try to resolve the issue informally, but if that fails the foreign marketer must resort to more resolution action. Such action can take the form of conciliation, arbitration, or as last resort, litigation.
Most business people prefer a settlement through arbitration rather than by suing a foreign company.
1. Conciliation: Conciliation is a non binding agreement parties to resolve disputes by asking a third party to mediate is to carefully listen to each party and to explore , clarify , and discuss the various practical options and possibilities for a solution with the intent that the parties will agree on a solution.
2. Arbitration: If conciliation is not used or an agreement can not be reached, the next step is arbitration. When all else false, arbitration rather than litigation is the preferred method for resolving international commercial disputes. The usual arbitration procedure is for the parties involved to select a disinterested and informal party or parties as referee to determine the merits of the case and make a judgment that both party agree to honor.
3. Litigation: Lawsuits in public courts are avoided for many reasons. Most observer of lawsuits between citizens of different believe that almost all victories are spurious because the cost frustrating delays and extended aggregation that these causes produce are more oppressive by far than any matter of comparable size.
The best advice is to seek settlement if possible rather than sue other deterrents to litigation the following-
Fear of creating a poor image and damaging public relations.
Fear of unfair treatment in a foreign court.
Difficulty in colleting a judgment that may otherwise have been collected in a mutually agreed settlement through arbitration.
The relatively high cost and time required when bringing legal action loss of confidentially.
