Explain the Cotton Arbitration

Arbitration is a more formal process than mediation and conciliation. Arbitration can take place between two states or individuals of two states or between a state and an individual of another state. An example of arbitration between two states is the "Rann of Kach" boundary dispute for demarcation of borders between India and Pakistan. Both countries opted for ad hoc arbitration. Arbitration between individuals is usually in matters of trade and the parties normally decide in advance through incorporation in a contract that any disputes shall be resolved through arbitration and as to what rules would apply and the venue of such arbitration proceedings as well. Liverpool is known for Cotton Arbitration.