Commercial diplomacy is a government service to the business community, which aims at the development of socially beneficial international business ventures.
The term commercial diplomacy is frequently used to cover two types of activities:
- Activities relating to trade policymaking.
- Business support activities.
So, commercial diplomacy is commonly employed within numerous foreign services and in the literature to describe business support functions performed by the member of diplomatic missions, their staff, and related agencies.
Importance of commercial diplomacy –
Commercial diplomacy can be defined as an endorsement of exports, internal investment and tourism throughout sustaining the trade missions, establishing and facilitating contacts between companies, helping to determine the troubles that companies face. They are the tools of diplomacy to the subtraction of barriers to trade and investment, and to the resolution of strategy conflicts arising from the globalization of the world financial system. It is an action conducted by a state legislative body with political status in view of business endorsement between a home and a host country. The removal of trade and investment barriers allows the free flow of people, goods, services, information, and investment across national and local borders. It aims at encouraging business growth during a series of business endorsement and facilitation activities.
Commercial diplomacy (CDC) is one of the features that preserve the tranquility in the real globalized world. Commercial diplomacy is a subject of upward apprehension for governments and business alike. Globalization of the late twenty-first century has enabled enhancement ambassadorial action; it evolved from mutual diplomacy 2 standard to the multilateral diplomacy, economic and educational or scientific.
Commercial Diplomacy for Conflict Handling –
Commercial diplomacy goes further than trade and investments, though, to the clarification of the manifold causes of worldwide strategy conflicts. These conflicts include differences among nations and organizations in the areas of labor standards, environmental issues, health and safety matters, and competition policy.
Commercial diplomats located abroad undertake business facilitation activities in the field of trade, investment, tourism, country image, and promotion of science & technology (S&T). They usually are staff members of a diplomatic mission or heads of a “commercial representation” abroad with diplomatic status.
Commercial diplomats are also involved as facilitators in business conciliation, and dispute settlement. CDs may be of direct help for business firms experiencing business disputes, non-payments, etc in the host country. Most of the time CDs help in order to avoid the judicial path and encourage “out of court” solutions.
Commercial Diplomacy has become more significant than ever. As business interests in foreign markets carry on, companies are cultivating ‘Corporate Ambassadors’ and participating in various global meeting.