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The purpose of this paper is to present the state and performance on development of alternative mechanisms in resolving disputes in transitional countries. Special significance is given to the impact of these mechanisms in creating an appropriate climate for potential investors to the Balkans countries, with special emphasis in Kosovo. Arbitration and intermediation are seen as opportunities for these countries to guarantee legal security, taking into consideration numerous problems in functioning of the judiciary. A part of Balkans’ countries managed to consolidate these mechanisms to solve the problems, but they need support to achieve general business awareness concerning the advantage they have. Kosovo is oriented to create favorable conditions for economic development by attracting foreign investment, whose rights are guaranteed also by the Constitution. FDI is seen as the main potential in economic development of Balkans countries, therefore, they should be dedicated in creating more propitious conditions for investment. DOI: 10.5901/ajis.2015.v4n1s2p159

Alternative Remedies in Resolving Disputes in Transitional Countries and Their Impact in Foreign Direct Investment (FDI): Kosovo Case