The role of commercial diplomacy in promoting and facilitating international business

Abstract

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. Article type: research paper

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