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Commercial diplomacy is important in global trade development between two countries. Commercial diplomacy can be seen or described as diplomatic activities carried out to develop businesses in another country and to develop future export business interests. Commercial diplomacy has to do with the diplomatic task or efforts made to foster business relationship between two countries. Commercial diplomacy plays a significant role to influence government policy and regulations that affect international trade and investments.
An export business on the other hand, has to do with selling your products and services beyond your country’s borders. In international trade, an export business cannot be over emphasized. It’s the method or way by which different industries or companies and individual business owners from one country sell their products or services to a different country. Simply put, an export business is the sale and movement of goods and services from one country to buyers in other countries. An export business deals with creating sales potential for products and services from home country to other countries while Commercial diplomacy deals with providing necessary information and assistance for exports business to thrive in foreign countries.
However, examples of goods or products that can be exported include petroleum, gas, vehicles, pharmaceutical products, chemicals, agricultural produce, and electronics, amongst others. Moreover, countries involve in exports business include, China, U.S.A., Germany, France, U.K., Netherlands, Japan, Hong Kong SAR, South Korea, Singapore, Kenya, amongst others. However, some benefits of export business may include, increase in production, increase in sales, increase in profit, as well as creating opportunity for employment, new customers and clients, amongst others.
Commercial diplomacy makes export business simple and easier, for companies and agribusiness men and women to export their products to foreign countries. Commercial diplomacy allows or gives room for companies and successful agribusiness men and women to make rapid progress in exports business, by providing necessary information for the home country’s companies or exporters about rules, regulations, foreign government policies on importation and exportation, agriculture etc., culture, public tenders and the market of the host country.
Furthermore, Commercial diplomacy may also help to find reliable foreign business partners for the home business investors. Likewise, Commercial diplomacy can provide prompt assistance in various ways for the home companies or exporters in the foreign country or host country in facilitating export business transactions, reducing or eliminating business threats, creating or improving business opportunities, gathering and distributing important market information, trade disputes, trade fairs and trade missions.
In addition, commercial diplomacy can provide information that covers all aspects of business relating to standards and quality services expected, in different business sectors like health, safety and environment; consumer protection; banking; telecommunications; competition policy; agricultural development programs; law relating to bribery and corruption, amongst others.
To cap it up, commercial diplomacy is indeed, a valuable tool for promoting exports business, mostly in terms of trade and investment to obtain commercial benefits for the home companies in foreign countries.
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