The use of arbitration clauses in international business contracts has become a popular alternative to traditional litigation due to its numerous benefits, including flexibility, confidentiality, and a higher degree of control over the dispute resolution process. This thesis aims to provide a comprehensive analysis of the use of arbitration clauses in international business contracts, including their advantages and disadvantages, the legal frameworks and regulations impacting their use, and the key factors that businesses should consider when selecting the appropriate legal system to govern these clauses. The study is significant because it addresses a critical need in the international business community for effective dispute resolution mechanisms.