Theoretical Principles of Economic Diplomacy

Abstract

The term economic diplomacy has established itself in the Croatian sources as an umbrella term for all the activities of the national state to protect and promote its own economic interests in the international environment. Under the broader concept of economic diplomacy we distinguish the activities of economic diplomacy and commercial diplomacy. The economic instruments of foreign policy are divided into two major groups: economic (development) aid and economic sanctions. Contrary to these traditional concepts we have a newer phenomenon called 'country branding'. Some countries use different systems of organizations to promote their economic interests in the global environment, and such a system is called model of economic diplomacy.

Keywords: Keywords: economic diplomacy, economic and commercial diplomacy, economic aid and sanctions, country branding, national model of economic diplomacy.

JEL Classification: F49