Arbitration plays a crucial role in resolving diplomatic disputes by providing a neutral third party to mediate conflicts between nations. This process facilitates dialogue and negotiation, allowing countries to settle disagreements without resorting to war or prolonged tension. Arbitrators consider evidence and legal frameworks, making binding decisions that both parties have previously agreed to accept. The goal of arbitration is to enhance international stability and promote peaceful relations, ensuring that disputes are handled in a structured manner instead of through chaotic or unilateral actions.