Economic diplomacy is distinguished from traditional diplomacy by its focus on achieving foreign policy objectives through economic tools rather than just political or military means. In economic diplomacy, countries engage in negotiations related to trade agreements, investments, and economic aid, aiming to enhance their own economic interests while fostering international cooperation. This approach emphasizes the interconnectedness of global economies and recognizes that economic relations can significantly influence political outcomes. Conversely, traditional diplomacy often centers on direct negotiations between states regarding security and political alliances, relying primarily on dialogue and statecraft.