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EXAMINATION OF ECONOMIC DIPLOMACY IN PROMOTING INVESTMENTS IN NIGERIA

EXAMINATION OF ECONOMIC DIPLOMACY IN PROMOTING INVESTMENTS IN NIGERIA

CHAPTER ONE

INTRODUCTION

Background to the Problem
The phenomenon of economic diplomacy is not new. It can be traced back to the
commercial diplomacy of the European states in the 19th century. However, the
increasing of the role of economic diplomacy in the international economical
attitudes is promoted by quite a number of factors. Some of these factors include
Internationalization processes and reinforcement of interdependence of the world
economic system (i.e. global and regional integration). The other factor includes the
expansion of market economy area, liberalization of national economies and their
interaction via trade and international investments. Last but least there has been an
increasing number of global economy entities, i.e. transnational corporations, banks,
investment groups, which have a serious influence on world politics, international
relations, and existence of large‐scale and expanding dependence of economies of
new independent countries on world markets, investments, technologies forces them
to correct its positions on political and military problems of international life.

Attraction of foreign investments is an essential issue of economic diplomacy.
Basically, the main facility for its realization is a favorable environment creation for
the meetings of exporters and their potential partners, undoubtedly, to define and
formulate priorities, as well as to show all profitable sides of exported goods and
technologies.
Nevertheless, it is necessary to emphasis on the importance of the minutely
developed export strategy of country determining the basic directions of export of
goods. On balance, it should be the primary goal of trade and economic missions.
Strengthening of the institutional and organizational base, growth of status of
economical diplomacy in the system of authority is observed practically everywhere.
The functions are expanding, the quality of work is improving and the number is
increasing of the trade and economic missions of the country in the field of support
of overseas trade activities, lobbying of interests of domestic companies abroad,trade and political assistance, mobilization of effective external resources on
development purpose. In the final analysis, what economic diplomacy needs is to
maintain the auspicious conditions of international economic cooperation that is able
to promote and raise the level and quality of living of its population. To put it simply,
the trade and economic mission is a small islet in strange country accumulating
extensive knowledge on the host country and forming political direct contacts due to
its long‐term presence in other countries. Actually, their work should be directed on
the collecting of the accessible and solid data about the level and gravity of priorities,
objective interest in investments and mutual benefits of the host country. Even if it
requires to compromise, benefit should be greater than the concession

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Updated: 23rd October 2018 — 11:17 am

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