Abstract

This article is devoted to global trends of economic diplomacy development in the context of globalization. Among the main factors that influence on the development of instruments of international economic diplomacy important role play political factors. They play key role in determining prospects for economic entities international cooperation and priorities of their business communication with representatives of other political systems. The most important in the political environment analysis is: (1) to study of political system characteristics to determine the main parameters and features of integrated political symptoms interaction and political forces subordination; (2) to determine the status of political stability in order to predict political priorities, create an atmosphere of political loyalty, and promote political conditions; (3) to assess political risks in order to predict certain expected and unexpected conflicts and to identify ways of their overcoming. Also on development of international economic diplomacy instruments influence such factors as economic environment, factors of socio-cultural environment, technological environment, physical environment, etc. Bright examples of negative tools of economic diplomacy implementation are: periodic “gas war” between Russia and Ukraine; prohibition by the Russian Federation on the import of Ukrainian dairy products, juices, soybean, soybean meal, sunflower and corn grits, potatoes, canned vegetables, canned fish, fruits, vegetables and herbs in 2014; economic sanctions by Western countries against Russia. The aim of the article. The aim of article is studying modern trends of development of economic diplomacy in context of globalization. The results of the analysis. Key point of argumentation of this article is that significant increase of national wealth in many countries in the second half of the 20th century is largely connected with intensification of economic diplomacy in all directions. Recently improvement of commercial and economic relations between states is in the heart of diplomatic dialogue. Main reasons of interest in economic diplomacy are based on the following: globalization of trade and business, implementation of economic reforms in processes of orientation to a market economy, which shrinks area of non-market economy in the world and leads to reduction of characteristic of its closeness and self-sufficiency. Tasks which are the basis of interests of economic diplomacy also include: amplifying struggle between individual links of the global economic system, growth of number of industrialized countries, resulting in a constantly growing share of foreign trade and investment, expansion of regional trade agreements with the aim to remove barriers for international trade and investment processes which determine at a considerable extent the leading role of the EU, MERCOSUR, NAFTA, FTAA and others. Modern trends in development of economic diplomacy in the context of globalization are based on management decisions on different levels of structure of the world market – on mega, macro, meso and micro levels. Deep analysis of current geo-economic trends is an important step in understanding the nature and features of effective use of tools of economic diplomacy in international economic relations. The current situation of economic diplomacy is characterized by next trends: activation of multilateral regular relations between countries, that consequences in integration processes in trade and business; providing economic reforms, aimed on creation market economy, which constricts the area of non-market economy; the increasing of the number of industrialized countries, resulting in a constantly growing share of foreign trade and investment in trade balance of countries; expand regional trade agreements with the aim to remove barriers for international trade and investments; increased state involvement in promotion and protection of national interests on the world market. Conclusions and directions of further researches. The economic diplomacy influences on the overall trends of world market trade, investment, innovation and socio-cultural spheres of life. On the other hand, new challenges of internationalization and globalization give a qualitatively new dimension in economic diplomacy, which is focused on achieving positive result of foreign economic activity of countries.

Keywords: economic diplomacy, world economy, globalization, international trade, export, import, investments

JEL Classification: F20, F42.

Cite as: Kanishchenko O. & Mamalyga, O. (2015). Global trends of economic diplomacy development under globalization. Marketing and Management of Innovations, 1, 135-146. https://doi.org/10.21272/mmi.2015.1-11

This work is licensed under a Creative Commons Attribution 4.0 International License

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