Commercial diplomacy is diplomacy that focuses on development of business between two countries.[1][2] It aims at generating commercial gains in the form of trade and inward and outward investment by means of business and entrepreneurship promotion and facilitation activities in the host country.[3] Commercial diplomacy is pursued with the goal of gaining economic stability, welfare, or competitive advantage.[4]
As a term, commercial diplomacy emerged in the second half of the twentieth century (e.g., Joseph, 1965;[5] Corbet, 1972[6]), but the concept certainly existed in previous centuries.[7] In literature the concepts of economic diplomacy and commercial diplomacy are often used interchangeably.[4] Definitions of both concepts vary, and consequently the relationship between them is also described differently. Some authors argue that commercial diplomacy is a subset of economic diplomacy.[8] It is certain, however, that both kinds of diplomacy are "irrevocably intertwined" and thus "distinct [but] obviously closely related to [each other]".[9]
Commercial diplomacy emphasizes the government's role, being defined as "a government service to the business community, which aims at the development of socially beneficial international business ventures".[10][11] It is "the work of diplomatic missions in support of the home country's business and finance sectors and includes the promotion of inward and outward investment, as well as trade".[12] Commercial diplomacy thus includes "all aspects of business support and promotion" including investment, tourism, R&D, and intellectual property.[13]
Commercial diplomacy is designed to influence foreign government policy and regulatory decisions that affect global trade, investment and commerce. It is concerned with government regulations and actions that affect international commerce—including standards in areas such as health, safety, the environment, and consumer protection; regulations covering services such as banking, telecommunications and accounting; competition policy and laws concerning bribery and corruption; agricultural support programs; and industrial subsidies. Potter (2004) argues that commercial diplomacy is a value-creating activity due to its usefulness in dealing with managerial and government concerns.[14]
In this context, commercial diplomacy is profitable in that it makes exporting and operating abroad easier; it is a valuable instrument for export promotion and operating abroad; it enables companies to perform tasks abroad more quickly and increases the amount of exports and company results by providing information about rules, regulations, culture, public tenders and the market of the host country; by providing support during the partner search; and by providing assistance in trade disputes, fairs, and missions. Especially for companies that have financial limitations, access to reliable information and a broad network abroad are essential.[15][14]
Activitiesedit
Traditional commercial diplomacy activities include facilitating, negotiating, promoting and arbitrating international trade, investment, intellectual property and commerce, and advocating Responsible Commercial Diplomacy (RCD), together with networking, capacity building, intelligence, image campaigns and support.[16][17] These activities are shown in the table below.
Network activities
Intelligence
Image campaigns
Support
Developing business and government contacts
Gathering and disseminating commercial information
Promoting goods and services
In negotiations; contract implementation and problem-solving
State visits
Market research
Participating in trade fairs, introducing potential exporters
Gathering export marketing data
Buyer-seller meetings
Reporting to home country
Sensitizing potential foreign investors
Supervision of violations of IPRs and contracts
Match-making
Consultant to both countries
Gathering export marketing data
Advocacy
Search for partners, distributors, investors, lawyers
Image studies, joint scientific research
Tourism promotion
Coordination of legal action
Personal network
Awareness campaigns
Other activities for commercial diplomacy and rationales that companies need are: need for access to reliable and neutral business information; credibility and image support in foreign markets; partner search; conflict handling; support of home country delegations (state missions); strategic concerns (e.g., energy).[16]
^Naray, O. (2008). "Commercial Diplomacy: A Conceptual Overview." Conference paper for the 7th World Conference of TPOs – The Hague, The Netherlands.
^Stoddard, Edward (2016-06-08). "Tough times, shifting roles: examining the EU's commercial diplomacy in foreign energy markets". Journal of European Public Policy. 24 (7): 1048–1068. doi:10.1080/13501763.2016.1170190. ISSN 1350-1763. S2CID 156087171.
^Ruel, H. J. M. and Visser, R. (2012). "Commercial Diplomats as corporate entrepreneurs: explaining role behavior from an institutional perspective", International Journal of Diplomacy and Economy.
^ abReuvers, S. and Ruel, H. J. M., "Research on Commercial Diplomacy: Review and Implications" in Commercial Diplomacy and International Business: a conceptual and empirical exploration, Ruel, H. J. M., ed. (Advanced series in Management, Emerald, 2012).
^Curzon, Gerard. (1965). Multilateral commercial diplomacy; the General agreement on tariffs and trade, and its impact on national commercial policies and techniques. Praeger. OCLC 239350.
^Corbet, Hugh (1972). "Australian commercial diplomacy in a new era of negotiation". Australian Outlook. 26 (1): 3–17. doi:10.1080/10357717208444425. ISSN 0004-9913.
^Otte, T. G. (2016), ""A Kind of Black Hole"?: Commercial Diplomacy Before 1914", The Foreign Office, Commerce and British Foreign Policy in the Twentieth Century, London: Palgrave Macmillan UK, pp. 25–68, doi:10.1057/978-1-137-46581-8_2, ISBN978-1-137-46580-1
^Okano-Heijmans, M., and Ruel, H. (2011). "Commerciële diplomatie en internationaal ondernemen: Koopman versus dominee in de nieuwe economische wereldorde[permanent dead link]", International Spectator, 65(9), 463-467.
^Berridge, G. J., A Dictionary of Diplomacy (Basingstoke: Palgrave, 2001): p. 128.
^Kotabe, M., and Czinkota, M. R. (1992). "State government promotion of manufacturing exports: A gap analysis", Journal of International Business Studies, 23(4), 637-658.
^Naray, O. (2010). "Commercial Diplomats in the Context of International Business", The Hague Journal of Diplomacy, 6, 121-148.
^Ozdem, M. I. (2009). Government Agencies in Commercial Diplomacy: Seeking the Optimal Agency Structure for Foreign Trade Policy. North Carolina State University, p. 8.
^Naray, O. (2010). "What a good Commercial Diplomat has to know and be capable of", Exchange: The Magazine for International Business and Diplomacy, 2 (December 2010): 8-9.
^ abPotter, E. H. (2004). "Branding Canada: The Renaissance of Canada's Commercial Diplomacy", International Studies Perspectives, 5, 55-60.
^Busschers, S. (2012). "The Value of Commercial Diplomacy from an International Entrepreneurs perspective", in Commercial Diplomacy and International Business: a conceptual and empirical exploration, Ruel, H. J. M., ed. (Advanced series in Management, Emerald, 2012).
^ abKostecki, M., and Naray, O. (2007). Commercial Diplomacy and international business (Den Haag: Nederlands Instituut voor Internationale Betrekkingen Clingendael, April 2007): p. 41.
^A Guide to Commercial Diplomacy. United Nations. 2019. doi:10.18356/61e64df4-en. ISBN9789210041096. S2CID 240650817. Retrieved 2020-08-17. {{cite book}}: |website= ignored (help)
Further readingedit
Knopp, H. (2004), Commercial Diplomacy and the National Interest, American Academy of Diplomacy. ISBN9780967910826.
Ruël, H., ed., (2012), Commercial Diplomacy in International Entrepreneurship, Emerald Group Publishing. ISBN9781780526744.
United Nations, (2019), A Guide to Commercial Diplomacy, United Nations Publications, doi:10.18356/61e64df4-en.
December 18, 2023
commercial, diplomacy, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, contains, content, that, written, like, advertisement, please, help, improve, remo. This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article contains content that is written like an advertisement Please help improve it by removing promotional content and inappropriate external links and by adding encyclopedic content written from a neutral point of view June 2019 Learn how and when to remove this template message A major contributor to this article appears to have a close connection with its subject It may require cleanup to comply with Wikipedia s content policies particularly neutral point of view Please discuss further on the talk page June 2019 Learn how and when to remove this template message Learn how and when to remove this template message Commercial diplomacy is diplomacy that focuses on development of business between two countries 1 2 It aims at generating commercial gains in the form of trade and inward and outward investment by means of business and entrepreneurship promotion and facilitation activities in the host country 3 Commercial diplomacy is pursued with the goal of gaining economic stability welfare or competitive advantage 4 As a term commercial diplomacy emerged in the second half of the twentieth century e g Joseph 1965 5 Corbet 1972 6 but the concept certainly existed in previous centuries 7 In literature the concepts of economic diplomacy and commercial diplomacy are often used interchangeably 4 Definitions of both concepts vary and consequently the relationship between them is also described differently Some authors argue that commercial diplomacy is a subset of economic diplomacy 8 It is certain however that both kinds of diplomacy are irrevocably intertwined and thus distinct but obviously closely related to each other 9 Contents 1 Purpose 2 Activities 3 See also 4 References 5 Further readingPurpose editCommercial diplomacy emphasizes the government s role being defined as a government service to the business community which aims at the development of socially beneficial international business ventures 10 11 It is the work of diplomatic missions in support of the home country s business and finance sectors and includes the promotion of inward and outward investment as well as trade 12 Commercial diplomacy thus includes all aspects of business support and promotion including investment tourism R amp D and intellectual property 13 Commercial diplomacy is designed to influence foreign government policy and regulatory decisions that affect global trade investment and commerce It is concerned with government regulations and actions that affect international commerce including standards in areas such as health safety the environment and consumer protection regulations covering services such as banking telecommunications and accounting competition policy and laws concerning bribery and corruption agricultural support programs and industrial subsidies Potter 2004 argues that commercial diplomacy is a value creating activity due to its usefulness in dealing with managerial and government concerns 14 In this context commercial diplomacy is profitable in that it makes exporting and operating abroad easier it is a valuable instrument for export promotion and operating abroad it enables companies to perform tasks abroad more quickly and increases the amount of exports and company results by providing information about rules regulations culture public tenders and the market of the host country by providing support during the partner search and by providing assistance in trade disputes fairs and missions Especially for companies that have financial limitations access to reliable information and a broad network abroad are essential 15 14 Activities editTraditional commercial diplomacy activities include facilitating negotiating promoting and arbitrating international trade investment intellectual property and commerce and advocating Responsible Commercial Diplomacy RCD together with networking capacity building intelligence image campaigns and support 16 17 These activities are shown in the table below Network activities Intelligence Image campaigns SupportDeveloping business and government contacts Gathering and disseminating commercial information Promoting goods and services In negotiations contract implementation and problem solvingState visits Market research Participating in trade fairs introducing potential exporters Gathering export marketing dataBuyer seller meetings Reporting to home country Sensitizing potential foreign investors Supervision of violations of IPRs and contractsMatch making Consultant to both countries Gathering export marketing data AdvocacySearch for partners distributors investors lawyers Image studies joint scientific research Tourism promotion Coordination of legal actionPersonal network Awareness campaignsOther activities for commercial diplomacy and rationales that companies need are need for access to reliable and neutral business information credibility and image support in foreign markets partner search conflict handling support of home country delegations state missions strategic concerns e g energy 16 See also editDefence diplomacyEconomic diplomacy Energy diplomacy Medical diplomacy Public diplomacy Public diplomacyReferences edit Naray O 2008 Commercial Diplomacy A Conceptual Overview Conference paper for the 7th World Conference of TPOs The Hague The Netherlands Stoddard Edward 2016 06 08 Tough times shifting roles examining the EU s commercial diplomacy in foreign energy markets Journal of European Public Policy 24 7 1048 1068 doi 10 1080 13501763 2016 1170190 ISSN 1350 1763 S2CID 156087171 Ruel H J M and Visser R 2012 Commercial Diplomats as corporate entrepreneurs explaining role behavior from an institutional perspective International Journal of Diplomacy and Economy a b Reuvers S and Ruel H J M Research on Commercial Diplomacy Review and Implications in Commercial Diplomacy and International Business a conceptual and empirical exploration Ruel H J M ed Advanced series in Management Emerald 2012 Curzon Gerard 1965 Multilateral commercial diplomacy the General agreement on tariffs and trade and its impact on national commercial policies and techniques Praeger OCLC 239350 Corbet Hugh 1972 Australian commercial diplomacy in a new era of negotiation Australian Outlook 26 1 3 17 doi 10 1080 10357717208444425 ISSN 0004 9913 Otte T G 2016 A Kind of Black Hole Commercial Diplomacy Before 1914 The Foreign Office Commerce and British Foreign Policy in the Twentieth Century London Palgrave Macmillan UK pp 25 68 doi 10 1057 978 1 137 46581 8 2 ISBN 978 1 137 46580 1 Okano Heijmans M and Ruel H 2011 Commerciele diplomatie en internationaal ondernemen Koopman versus dominee in de nieuwe economische wereldorde permanent dead link International Spectator 65 9 463 467 Berridge G J A Dictionary of Diplomacy Basingstoke Palgrave 2001 p 128 Kotabe M and Czinkota M R 1992 State government promotion of manufacturing exports A gap analysis Journal of International Business Studies 23 4 637 658 Naray O 2010 Commercial Diplomats in the Context of International Business The Hague Journal of Diplomacy 6 121 148 Ozdem M I 2009 Government Agencies in Commercial Diplomacy Seeking the Optimal Agency Structure for Foreign Trade Policy North Carolina State University p 8 Naray O 2010 What a good Commercial Diplomat has to know and be capable of Exchange The Magazine for International Business and Diplomacy 2 December 2010 8 9 a b Potter E H 2004 Branding Canada The Renaissance of Canada s Commercial Diplomacy International Studies Perspectives 5 55 60 Busschers S 2012 The Value of Commercial Diplomacy from an International Entrepreneurs perspective in Commercial Diplomacy and International Business a conceptual and empirical exploration Ruel H J M ed Advanced series in Management Emerald 2012 a b Kostecki M and Naray O 2007 Commercial Diplomacy and international business Den Haag Nederlands Instituut voor Internationale Betrekkingen Clingendael April 2007 p 41 A Guide to Commercial Diplomacy United Nations 2019 doi 10 18356 61e64df4 en ISBN 9789210041096 S2CID 240650817 Retrieved 2020 08 17 a href Template Cite book html title Template Cite book cite book a website ignored help Further reading editKnopp H 2004 Commercial Diplomacy and the National Interest American Academy of Diplomacy ISBN 9780967910826 Ruel H ed 2012 Commercial Diplomacy in International Entrepreneurship Emerald Group Publishing ISBN 9781780526744 United Nations 2019 A Guide to Commercial Diplomacy United Nations Publications doi 10 18356 61e64df4 en Retrieved from https en wikipedia org w index php title Commercial diplomacy amp oldid 1135398023, wikipedia, wiki, book, books, library,
