Economic diplomacy involves a country using economic resources and policy issues to pursue foreign policy objectives. It includes a country's representation at organizations like the WTO to influence economic policies of other nations. Economic diplomats advise their government on how to shape other countries' economic policies through incentives or sanctions. Effective economic diplomacy requires technical expertise to analyze how other countries' economic situations impact politics and trade interests. It also involves collaboration between governments and businesses on issues like technology, environment and health.

1. GFPP 2033 DIPLOMACY
ECONOMIC
DIPLOMACY

2. Economic diplomacy defined
 Economic diplomacy is concerned with
economic policy issues, e.g. work of delegations at
standard setting organizations such as World Trade
Organization (WTO). Economic diplomats also
monitor and report on economic policies in foreign
countries and give the home government advice on
how to best influence them. Economic diplomacy
employs economic resources, either as rewards or
sanctions, in pursuit of a particular foreign policy
objective. This is sometimes called "economic
statecraft".

3. Economic diplomacy-Issues
 Economic diplomacy is traditionally defined
as the decision-making, policy-making and
advocating of the sending state-business
interests. Economic diplomacy requires
application of technical expertise that analyze
the effects of a country's (Receiving State)
economic situation on its political climate and
on the sending State's economic interests.

4. Issues
 The Sending State and Receiving State, foreign
business leaders as well as government decision-
makers work together on some of the most cutting-
edge issues in foreign policy, such as technology,
the environment, and HIV/AIDS, as well as in the
more traditional areas of trade and finance.
Versatility, flexibility, sound judgment and strong
business skills are all needed in the execution of
Economic Diplomacy.

5. Scope
 a. Scope: International and Domestic economic
issues – this includes the “rules for economic
relations between states” that has been pursued
since the World War II. And owing to the increased
globalization and the resultant interdependence
among state during the 1990s obliges “economic
diplomacy to go deep into domestic decision making”
as well. This covers “policies relating to production,
movement or exchange of goods, services,
instruments (including official development
assistance), money information and their regulation”
(Bayne and Woolcock (eds) 2007)

6. Players
 b. Players: State and non-state actors – As all
government agencies that have economic mandates
operate internationally and are players in economic
diplomacy though they do not describe them as
such. Further, non-state actors such as NGOs that
are engaged in economic activities internationally are
also players in economic diplomacy (Bayne and
Woolcock (eds) 2007). Businesses and investors are
also actors in the process of economic diplomacy,
especially when contacts between them and
governments are initiated or facilitated by diplomats.

7. Berridge and James
 Berridge and James (2003) state that
“economic diplomacy is concerned with
economic policy questions, including the
work of delegations to conferences
sponsored by bodies such as the WTO” and
include “diplomacy which employs economic
resources, either as rewards or sanctions, in
pursuit of a particular foreign policy objective”
also as a part of the definition.

8. Rana, Kishan S
 Rana (2007) defines economic diplomacy as
“the process through which countries tackle
the outside world, to maximize their national
gain in all the fields of activity including trade,
investment and other forms of economically
beneficial exchanges, where they enjoy
comparative advantage.; it has bilateral,
regional and multilateral dimensions, each of
which is important”.