THE POWER AND THE ROLE OF ECONOMIC DIPLOMACY IN THE ERA OF GLOBALIZATION

Diplomatic economic engagement, in fact, economic diplomacy, became the most important activity for diplomacies of national countries, the international organizations, and integrations. It could be said that economic diplomacy became a basic tool for a breakthrough to the world market. In today's world where international and economic relations are a system of political and economic power relations, it is gradually forming a system that increasingly integrates businesses. The economies are becoming less national and increasingly global, thus turning into a transnational system of production, which is based on the international division of labor. The economic globalization is seen as the force which most threatens the authority of the nation state and reduces its power. The national monetary policy is losing autonomy because it cannot be turned internally towards domestic realistic inventory, but it must be turned externally towards international flows of capital and it has to join into international macroeconomic coordination. The European Union is a good example that the monetary policy is completely taken away from the national states. There is the established the European supranational sovereignty of economy and monetary affairs. By observing the globalization, the international relations respectively, which are changed since the Cold War domination, countries do not have power anymore. The globalization is not taking away the national state from its roots, but it is taking away the power of the authorities. Therefore, the states act as an initiator of the globalization and by doing this they are reducing their power and becoming responsible to outside economic members. Respectively, no matter of this evident trend in international political and economic relations the role of countries and diplomacies, as the instrument of promoting and protecting the interest of countries stays very important, especially the one in the area of the economic relations, respectively, economic diplomacy.