TAILIEUCHUNG - DISCUSSION PAPAERS IN DIPLOMACY: COMMERCIAL DIPLOMACY AND INTERNATIONAL BUSINESS

Home-based businesses are on the rise, especially while the stubborn economic recession continues to hold our economy in its grips. More and more individuals who are unable to land positions are turning to opening their own home-based businesses. The . Bureau of Labor Statistics puts the number of home-based businesses currently operating at million. Other organizations say the number is closer to 38 million. The pros seem to outnumber the cons. The low start-up costs are of particular interest to the many unemployed. Others are interested in the cost savings. | Discussion Papers in Diplomacy Commercial Diplomacy and International Business Michel Kostecki and Olivier Naray Netherlands Institute of International Relations Clingendael ISSN 1569-2981 Discussion papers in diplomacy Editor Dominic Kelly University of Warwick Managing Editor Jan Melissen Netherlands Institute of International Relations Clingendael and Antwerp University Desk top publishing Desiree Davidse Editorial Board Geoff Berridge University of Leicester Rik Coolsaet University of Ghent Erik Goldstein Boston University Alan Henrikson Tufts University Donna Lee Birmingham University Spencer Mawby University of Nottingham Paul Sharp University of Minnesota Duluth Copyright Notice Michel Kostecki and Olivier Naray April 2007 All rights reserved. No reproduction copy or transmission of this publication or part thereof in excess of one paragraph other than as a PDF file at the discretion of the Netherlands Institute of International Relations Clingendael may be made without the written permission of the author. Abstract Commercial diplomacy is a significant factor in the on-going process of globalization yet there is a shortage of empirical research on this activity. This paper reports the results of an empirical study conducted among diplomats and managers. It identifies three dominant types of commercial diplomats civil servant generalist and business promoter. The paper shows how commercial diplomacy contributes to the promotion of international trade and corporate partnership to the resolution of business conflicts and the marketing of a country as a location for foreign investments R D activities or tourist destination and made-in . It presents the current trends in commercial diplomacy examines the determinants of its value chain and service fees and makes a number of suggestions on how to improve performance given the growing willingness of governments to emphasize the business promotion approach. About the Authors Michel Kostecki is Professor at the .

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