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Chapter1
OVERVIEWOFINTERNATIONAL
ECONOMICDIPLOMACY
1.1.Definition
Thelast20yearsofthe21
st
centuryweresignificantfortheworld
economy.Bothpoliticalandeconomicfactorsinfluenceditsdevelop-
mentinthesameclimate.Domesticeconomiesworldwidewereinte-
gratedthroughtradeingoodsandservicesandthetransferofcapital
andtechnology.Itallowedforcreatinganinterconnectedmarketof
goods,services,capital,andtechnology,oferingadditionalopportu-
nitiesforpeopleandbusinessestoexpandtheiractivitiesandincrease
theirincomes.Thecollapseofcommunismandtheinclusionofthe
CentralandEasternEuropeancountriesinthefreemarketsystem
gaveadditionalhopeformorerapiddevelopment.Simultaneously,
economicinterdependencetriggerednewchallenges,suchasthe
rapidspreadofeconomicimpulses,bothpositiveandnegative,like
economicandfinancialcrises.
Ontheonehand,wehavebeenobservingadeepeningeconomic
integrationandinternationalizationofeconomies.Ontheotherhand,
wideningdevelopmentaldiferencesbetweenrichandpoorcoun-
trieshavegeneratedarangeofnewglobalissues.Asolutionofwater
scarcity,climatechange,financialinstability,terrorism,migrantand
refugeewaves,poverty,etc.,requiresallcountries’engagement(Hite,