Globalisation and Its Impact on Economic Diplomacy – An Emperical Study of Kuwait

Abstract

Globalization is generally defined as the process of integration of nations resulting from the transaction of world views, products, ideas, and many other aspects of culture. One particular development, arising from the advancing globalization, is the way countries are seeking cooperation with other countries of the world. Because of the highly developed means of communication, countries are seeking economic stability through diplomatic relationships. Economic diplomacy is traditionally defined as the decision and policy- making and advocating of business interests of a state. Economic diplomacy requires application of technical expertise that analyzes the effects of one's own and another country's economic situation on its political climate. This study, therefore, focuses on a historical analysis of the development of globalization and hence, economic diplomacy as one of its resulting trends to determine Kuwait's place in the world economy. The study explores the following research question: What role has globalization played in giving rise to economic diplomacy? The study uses historical analysis to explore the question. Two factors have been important in the current economic situation of the state of Kuwait: its foreign policy which was influenced by the direct interests of Middle Eastern states and of the United States and her dependence on its oil production.