THE INFLUENCE OF ECONOMIC DIPLOMACY ON THE DEVELOPMENT OF TRADE RELATIONS BETWEEN NATIONS

Abstract

Economic diplomacy has emerged as a central instrument in shaping the dynamics of international trade relations. Beyond traditional political negotiations, it encompasses a wide range of activities such as trade agreements, investment promotion, export facilitation, and dispute resolution. This study examines the influence of economic diplomacy on the development of trade relations between nations, with a focus on how states employ diplomatic channels to secure market access, attract foreign direct investment, and strengthen economic partnerships. A mixed-method research design was adopted for this study. By analyzing both bilateral and multilateral initiatives, the research highlights the ways in which economic diplomacy contributes to building trust, reducing trade barriers, and fostering long-term cooperation. At the same time, it considers the challenges posed by protectionist policies, power asymmetries, and global economic uncertainties. The findings aim to provide a deeper understanding of the effectiveness of economic diplomacy as a tool for advancing national interests while promoting mutual economic growth in an increasingly interconnected world