Commercial Diplomacy Research Articles

The role of commercial diplomacy in promoting and facilitating international business

Objective: The main aim of this paper is to examine the role and challenges of contemporary commercial diplomacy in business promotion and facilitation of international trade and investment. Research Design & Methods: The research methods include the critical review of existing literature, analysis of relevant legal and official documents and the case study of the Polish model of commercial diplomacy. Findings: The research revealed that with transformation of the world’s economy and trading system, the scope and focus of commercial diplomacy tend to change. The activity of commercial diplomats increasingly focuses on promoting national brand and strengthening the image of national companies, discovering more tailored and “hidden” information, expanding tourism and attracting FDIs. One of the main priorities of commercial diplomacy is to support small and medium companies (SMEs) in their first steps to be made in foreign market. The Polish organization model of commercial diplomacy is currently undergoing major reform in the course towards improving the government-business relationship and increasing the efficiency of trade and investment promotion activities through eliminating of tasks duplication. Contribution & Value Added: The research provides a deeper understanding of rationale of commercial diplomacy and its complex determinants, and it allows to formulate some indications for governments and businesses on how to better use diplomatic tools in achieving internationalization goals.

The International Legal Framework Governing Chinese Investments in Sri Lanka; An Impetus for Increased Commercial Diplomacy

The International Legal Framework Governing Chinese Investments in Sri Lanka; An Impetus for Increased Commercial Diplomacy

Commercial Diplomacy and Political Risk

Commercial Diplomacy and Political Risk

Organising Greek commercial diplomacy: oscillating between integrated and fragmented models of organisation

In a growing number of countries, national diplomatic systems are in a process of profound transformation as a response to the increased need for more commercial diplomacy. In order to pursue this priority effectively, governments of developed economies have integrated commercial diplomacy to their national diplomatic systems by re-arranging their foreign ministries and centralising commercial diplomacy. And although literature on commercial diplomacy of competitive economies has found its way into the mainstream of diplomatic studies, there is lack of smaller country based studies with regard to how they choose to organise it. In this light, the present study explores the contemporary organisational setup of commercial diplomacy in Greece. Specifically, it investigates the structures and processes that Greek governments have put in place and whether those are aligned with mainstream developments in the said area of diplomacy.

Organising Greek commercial diplomacy: oscillating between integrated and fragmented models of organisation

This paper was accepted for publication in the journal International Journal of Diplomacy and Economy and the definitive published version is available at https://doi.org/10.1504/IJDIPE.2018.091376

COMMERCIAL DIPLOMACY IN A GLOBALIZED WORLD

The beginning of 21st century has witnessed the consolidation of a process of globalization, where since the 1980s the hegemonic position of the United States has weakened and the international environment is moving towards a multipolar system with emerging economies adopting an increasing power. In this context, new non-state actors, such as non governmental organizations or multinational firms, have adopted an important role in the stage of international relations that in the past was limited to states and international organizations. The globalization process forced firms to operate internationally, and the financial crisis started in 2008 provoked the contraction of domestic markets and obliged governments and many firms from industrialized economies to look beyond the limits of their home states if they wanted to survive and benefit from the enormous opportunities offered by the new potential foreign markets. In order to achieve this, both governments and multinational firms should adapt diplomacy and its capabilities to their own specific needs. Commercial diplomacy includes policies, practices, instruments and organizational structures that governments and multinational firms should adopt at different levels to survive in today’s rapidly changing global business environment. Only by interacting between them and with the rest of actors within the international sphere, states and multinational firms will benefit from the switch in the balance of economic power.

Conflict management in western Europe: the case of the Portuguese merchants in England, Flanders and Normandy, 1250–1500

ABSTRACTRecent historiography argues that the legal autonomy of municipal governments created the necessary conditions for successful commercial transactions and economic growth in certain parts of Europe in the later Middle Ages, and that these features attracted foreign merchants. This article uses empirical data from England, Flanders and Normandy to test the following questions: were there significant differences in rules, laws and institutions between one place and another in late medieval western Europe? Were the Portuguese merchants drawn to markets that hypothetically had more effective institutions? The findings demonstrate that legal institutions and conflict management were very similar across western Europe, and that there is no evidence that the Portuguese opted for trading in a certain market because of its effective institutions. Moreover, the article claims that the merchants seemed to prioritise protection and privilege while trading abroad, and it highlights the role of commercial diplomacy in conflict management.

Management and Business Research on Commercial Diplomacy: Examining Trends and Themes

ABSTRACTThis article reviews the literature of commercial diplomacy during the period 1960–2014 from a management angle and is organized around four major themes: (1) government’s export/trade promotion function; (2) institutional/organizational arrangements; (3) managerial roles and activities; and (4) interaction between commercial diplomats and businesses. A complementary quantitative analysis tracing current research trends reveals the emergence of relevant publications at the end of the 1970s and a real increase after 2000. It also confirms the relative scarcity of commercial diplomacy literature focusing on the business and management dimension. Gaps in current literature are identified, and suggestions for further research are presented.

Economic Diplomacy in the Innovation Global Value Chains as the National Security Providing Strategy Component

Th e article deals with the analyzes of economic diplomacy application in the area of innovations. The strategy of economic diplomacy by improving the efficiency in global value chain participation was considered . The main effects of commercial diplomacy using in the innovation area was identified . The world experience using economic diplomacy in the innovation sphere was considered .

TRANSFORMATION OF UKRAINE’S COMMERCIAL DIPLOMACY: RESHAPING THE MODEL

The article examines past and present changes in the system of commercial diplomacy of Ukraine in the context of external and internal, old and new challenges. The aim of the study is to propose recommendations for the improvement of existing model and to identify lessons learned from Ukrainian experience that could be useful for developing countries. The relevancy of the study is conditioned by the need to enhance the effectiveness of Ukraine’s commercial diplomacy in the face of existing challenges. The applied methodology is a combination of methods used for theoretical and empirical research (observation, comparison, analysis and synthesis, system and structural analysis). We found that present distorted organizational set-up of Ukraine’s commercial diplomacy is the result of the uncompleted process of integration of management of international economic relations to the Ministry of Foreign Affairs. We argue that the introduction of a unified model is untimely but can be considered as promising in a more distant future. Ukraine’s experience shows that without necessary prerequisites (a certain level of economic development and role in international relations, which require clear strategic vision and effective coordination of traditional and commercial diplomacies) and proper implementation, the introduction of the unified model is unlikely to lead to the desired outcome. Results of the analysis also indicate that the promotion of export and investment needs further impetus. Suggested recommendations address both organizational and practical aspects of Ukraine’s commercial diplomacy. Their implementation would have a positive impact on the style and effectiveness of Ukraine’s commercial diplomacy and, therefore, competitiveness of the national business.

Waiting for de Gaulle: France's ten-year warm-up to recognizing the People's Republic of China

AbstractThis article focuses on France's policy towards Socialist China in the decade preceding the spectacular and well-studied decision by President Charles de Gaulle to officially recognize the People's Republic of China (PRC). It argues that since the mid-1950s successive French governments discreetly orchestrated a process of rapprochement with the Communist authorities in Beijing. The article demonstrates that, at a time when the international situation discouraged steps towards official relations, the French government used commercial diplomacy as a means to open unofficial diplomatic channels with the Chinese and prepare the ground for future recognition. Relying mostly on French archival sources, this article brings to light evidence of the evolution of French diplomacy's thinking about Socialist China and assesses the rationales behind the French government's growing determination to normalize relations with it. It argues that the intensifying contest among European countries to reach out to Beijing, concerns about the PRC's appeal to developing countries, and an early appraisal of Sino-Soviet rivalry prompted French authorities to work for Sino-French rapprochement, while, at the same time, annoyance at the White House's obstinate refusal to revise its reading of Cold War dynamics weakened France's disposition to fall into line with American demands to maintain a harsh stance towards the PRC.

Tough times, shifting roles: examining the EU’s commercial diplomacy in foreign energy markets

ABSTRACTFocusing on the strategically important Caspian region, this article demonstrates how commercial energy diplomacy – political support for foreign-investing businesses – is increasingly conducted at the European Union (EU) level. It explains why member states have delegated this role, despite a general hesitancy to co-operate in foreign energy policy and perceptions of a strong division between diplomacy-based and (EU-favoured) governance-based approaches to external energy policy. To explain this new role (and its limits), this article employs a functional–rationalist framework focusing on the structural demands of a more challenging international energy environment and EU-level supply factors (economies of scale, increased leverage and more neutral/less politicized position of the EU) that help respond to it. Overall, the article examines an important area of increasing EU foreign energy co-operation and demonstrates how energy governance and diplomacy are not necessarily competing approaches, but rather different tools for achieving a more secure investment climate for European companies.

La utilización del poder de fijar la agenda en la evolución del sistema de comercio multilateral de la integración “negativa” a la “positiva”

Este documento sostiene que la construcción de un régimen de propiedad intelectual globalizado (ADPIC) de la Organización Mundial del Comercio (OMC) fue emblemático del cambio de una integración "negativa" a una "positiva", que requiere que los Estados miembros de la OMC armonicen la reglamentación nacional para adecuarse a los preceptos del sistema multilateral de comercio, y representa el relativo fracaso institucional de la organización desde su creación en 1995. En el documento se examina el cambio hacia una integración "positiva" centrándose en la campaña para formular y construir el régimen de propiedad intelectual globalizado en la OMC. Al examinar el papel del poder de fijación de la agenda en la creación del Acuerdo ADPIC, este artículo tiene la intención de resaltar el alcance de la simbiosis entre la diplomacia comercial privada y el derecho mercantil internacional en la construcción de la campaña y, por lo tanto, demostrar cómo las empresas privadas han sido capaces de formalizar sus intereses específicos dentro de la OMC, mientras que agrava aún más las asimetrías que en última instancia han dado lugar a la parálisis en la regulación del comercio multilateral.

Monarchism, an Emerging Canadian Identity, and the 1866 British North American Trade Mission to the West Indies and Brazil

ABSTRACTIn 1865, the colonies of eastern British North America created a joint commission to investigate the possibility of reciprocal trade agreements with other parts of the Western hemisphere. In early 1866, the commissioners visited the West Indies and the Empire of Brazil, where they met officials and business leaders. No actual tariff agreements resulted from the commissioners’ travels, the main concrete result of the 1866 trade mission being the establishment of a direct steamship service between Canada and the West Indies. The study of contemporary discussions of the trade mission deepens our understanding of the history of relations between the British West Indies and British North America in the aftermath of emancipation and the end of the ‘Old Colonial System’. Moreover, these discussions reveal different elements of an emerging Canadian identity. Discourse of Britishness influenced the 1866 trade mission, but so did a sense of affinity linking Canada to the other monarchical territories in the Western hemisphere, such as the Empire of Brazil. For their part, some contemporaries in the West Indies welcomed the Canadian trade initiative because they wished for a counterweight to the growing influence of the United States in the region. The article also presents new information about British policy towards Latin America, particularly Mexico and Brazil, as well as British commercial diplomacy more generally. The article is based on materials in archives in the United Kingdom and Canada as well as a range of printed primary sources.

Theoretical Principles of Economic Diplomacy

The term economic diplomacy has established itself in the Croatian sources as an umbrella term for all the activities of the national state to protect and promote its own economic interests in the international environment. Under the broader concept of economic diplomacy we distinguish the activities of economic diplomacy and commercial diplomacy. The economic instruments of foreign policy are divided into two major groups: economic (development) aid and economic sanctions. Contrary to these traditional concepts we have a newer phenomenon called 'country branding'. Some countries use different systems of organizations to promote their economic interests in the global environment, and such a system is called model of economic diplomacy.

Statistics on the International Trade Administration's Global Markets Program

Recent mandates for evidence-based policy choices from both the Executive and Legislative branches of the federal government underscore the importance of understanding the relationship between program participation and outcomes. In this paper, I examine the correlations between participation in an export-promotion program with export and employment growth. I use this experience to provide more general lessons learned about combining program data on treatments with Census Bureau micro data that can be used as a control. Note that the analysis in this paper does not constitute a thorough evaluation of the overall effectiveness of Global Markets program. Rather, the paper provides rigorous statistical evidence on correlations of a subset of program services and select business outcomes.The mission of the U.S. Department of Commerce’s Global Markets program within the International Trade Administration is to assist and advocate for U.S. businesses in international markets to increase U.S. exports, and by extension, employment. It pursues this mission by providing U.S. companies with counseling, market research, commercial diplomacy trade events and other services. This study looks at a very small part of the overall program. While I cannot rule out several sources of bias, model results show that program participation is positively and significantly correlated with export growth. Many of the models also find a positive and significant relationship between employment growth and counseling, especially for small and medium-sized enterprises (500 employees or less).The paper concludes with a “Lessons Learned” section that highlights areas where measurement and data collection can be improved to facilitate building evidence on program effectiveness.

Commercial Diplomacy in the Adobe Empire

This paper investigates information and trust mechanisms employed by international traders in the early 19th century on the Great Plains frontier, using as a case study Bent, St. Vrain & Company (BSV). BSV dominated the burgeoning Santa Fe Trail trade amongst Americans, Mexicans, and the various nomadic Indian tribes inhabiting the frontier through superior application of “commercial diplomacy.” BSV went to great lengths to signal trustworthiness to their trading partners, adopting in large measure Indians’ own trading customs and employing other traditional mechanisms of trust and reciprocity.The economic outcomes of the Adobe Empire era illustrate the catallactic nature of spontaneous international trade - i.e. the notion that economic exchange involves “turning enemy into friend.” The Indian trade in general, and the case of BSV in particular, gives credence to the doux commerce thesis: the idea that the pursuit of profits promotes peace between peoples.

Does Diplomacy Promote International Trade? The Case of Ukraine

The purpose of this paper is to analyze the impact of the commercialdiplomacy of Ukraine on its export. Within this field of research we mutuallycompare various official representations abroad and their effects on exportflows. We consider embassies, consulates general and honorary consulatesas commercial diplomacy actors abroad. The main contribution of thepaper is that it is the first empirical study of Ukrainian commercialdiplomacy in terms of export promotion. We use an empirical trade modelto verify the impact of economic, cultural, geographical and diplomaticfactors on Ukrainian exports. The panel data incorporates 1386 export flowsto 198 destinations during the period from 2007 to 2013. In the end, weconclude that embassies are more relevant instruments of exportstimulation than consulates general or honorary consulates.

Electronic commercial diplomacy: a research model and an empirical analysis of embassy websites

This article deals with the question to what extent governments adopted digital communication channels in their commercial diplomacy services? Commercial diplomatic services are offered by governments to companies and entrepreneurs who aspire to do business in another country. First, this article presents a research framework drawn from the literature, followed by the results of an empirical study. A structured website analysis was carried out of the embassy websites of the top ten countries in e-government. The findings show that electronic commercial diplomacy (e-CD) is still in an 'embryonic' stage. The countries in this study have developed strategies and goals for their online presence, but the interactive services are still limited. Furthermore, the findings suggest that implementation settings - strategy, goals - can explain the type of e-CD to a more significant extent than institutional settings

Digital channels and technologies for commercial diplomacy: conceptualisation and future research propositions

In this article, we provide a conceptual framework for the practice and study of commercial diplomacy in the light of two developments in the field of diplomacy. The first development in the field is related to the relative popularity of two new terms in diplomatic practice: public diplomacy and nation branding. The second development is the role of information and communication technologies (ICTs). Our main objective is to clear the conceptual ambiguity by demonstrating the role of commercial diplomacy in the larger framework of diplomatic practices and the interdependence of commercial diplomacy, nation branding, and public diplomacy specifically in the age of digital communications. With our model, we hope to bridge the gaps between different practices, concepts, and fields of studies.