Disputes do arise in business transactions but some party gives little or no consideration to this dispute resolution. Dispute resolution in international transactions requires understanding of the law and employing diverse approaches. The significance of a business is to proliferate the capital laid for profit. When these disputes arise, a key step must be crafted appropriately as a mechanism to ensure the dispute is resolved amicably. The following questions should be asked while laying an appropriate mechanism of dispute resolution. Who are the plaintiff and the defendant, type of dispute, who is held accountable on something and why and how many parties are involved. This gives a key approach to dispute resolution.

Foreign business investors in various countries are faced with frequent legal issues especially those relating with agent/distributor, licensing, agreements and protection. In the first place, it is imperative that when a country has entered into an international transaction with another country (s) it signs a contractual agreement that is legally enforceable by the law. Without this a number of perils may spoil the transaction in general. The situation itself must be considered i.e. If any of the country is facing political unrest or any other peace interrupting issue. A good standing relationship between the countries yields a good return.

Each country has its own rules based on business and transaction that are enforced within its stated mandate. It is important to understand these laws to avoid infringement. This makes it easy to carry out transactions more easily. All that is needed in a business is escalation and establishment. Challenges may also arise depending cultures, level of competition, politics and legal systems of the nation.