Governing law selects the body of law interpreting the agreement. Venue selects where a dispute is heard. They are often different, and both are negotiable.
Accepting the other side's home venue means traveling to litigate, retaining local counsel, and appearing before a court with no particular familiarity with you. For a small claim that cost alone can exceed what is at stake.
Arbitration clauses deserve the same scrutiny. The seat, the rules and the number of arbitrators all affect cost and timeline, and all are set long before any dispute.
