Commercial diplomacy is a set of policies that are used with the aim of managing and guiding commercial relations in the international arena in the right direction. The word diplomacy generally means international relations between governments, nations, expressing wishes and pursuing national goals in the international space. In diplomacy, the solution to achieving goals is done through negotiation, interaction and trade.
In commercial diplomacy, countries are trying to pursue their specific commercial goals by using specific strategies and using specific tools; Goals such as developing the export process or attracting foreign investments.
The Nature of Commercial Diplomacy
This diplomacy focuses on the development of businesses through the establishment of friendly trade relations between countries. It is also responsible for training and empowering diplomats and business representatives to negotiate and find the best business partner. Due to the growing importance of commercial diplomacy, sufficient preparation of negotiators and their mastery of negotiation techniques and principles is essential and has an impact on the process of international interactions.
Objectives of Training Diplomatic Relations and Trade
1. Knowing and getting to know your interests and those of others
2. Appropriate currency for the country
3. Coordination between different agencies
4. Increasing information and coordination between domestic and foreign policies
5. Creating employment opportunities for capital and business owners in the private sector
6. Achieving opportunity through the transformation of regional and global political and security crises
7. Accelerating the process of globalization and the solidarity of world markets and the close connection of countries’ economies with each other
8. Understanding regional developments and having plans to adapt to these changes.
9. Taking control of markets globally
10. More and more developed countries who want power pay more attention to commercial diplomacy and use it in order to curb economic insecurities.
Principles of Commercial Diplomacy
Today, we are facing intense and very close competition from industrialized countries in global markets. In the highly competitive atmosphere of this market, countries are trying to maintain their position and gain superiority. Despite the space and limited resources under authority, these competitions sometimes lead to conflicts regarding share and profit. It is in this situation that commercial diplomacy helps to reduce regional and global tensions and conflicts by creating an environment for dialogue. This diplomacy also shows the necessity of mutual understanding for countries.
Despite the competitive and warlike atmosphere among countries, rules and laws have been defined for countries that, in addition to being successful in the international arena, will cause less damage to the final consumer.
The characteristics that a commercial diplomacy should have are as follows:
1. Using the capabilities available in interactions
2. Prioritizing economic and commercial considerations over political and security considerations in order to provide mutual benefits
3. Communicating with economic and financial units in the world and using their bargaining power
4. Legislation appropriate to the situation
The Necessity of Holding Commercial Diplomacy Training Courses
The most important dimensions of security are economic and commercial security; Because it has a direct relationship with the level of people’s well-being. Ensuring national security is not possible without considering economic power.
For this purpose, we need to attract foreign investments and create a legal platform for it. Achieving this goal is also possible by negotiating to establish organizations and economic and commercial relations with other countries.
In this regard, we even need to conclude multilateral economic treaties and agreements. For all these purposes, adequate training should be given to diplomats, private sector business owners, traders and merchants. These trainings are necessary in effective negotiations and interactions as well as the conclusion of international trade agreements that pursue national interests.
Up to Sum
Various factors are involved in commercial diplomacy, and under the influence of these factors, business activists set commercial goals and protect their national interests. For this purpose, the use of special interactive strategies and tools has caused complexity in this field. Countries need economic prosperity to ensure their internal security. In order to provide economic prosperity, they should be able to maintain their position in the global competitive market and establish positive interactions with other countries. As a result, in this direction, they need capabilities in the field of negotiation, effective dialogue and international obligations. Commercial diplomacy teaches a complete package of these abilities to the activists of this field.