Nation branding aims to measure, build and manage the reputation of countries (closely related to place branding). In the book Diplomacy in a Globalizing World: Theories and Practices, the authors define nation branding as “the application of corporate marketing concepts and techniques to countries, in the interests of enhancing their reputation in international relations.” Many nations try to make brands in order to build relationships between different actors that are not restricted to nations. It extends to public and private sectors in a nation and helps with nationalism. States also want to participate in multilateral projects. Some approaches applied, such as an increasing importance on the symbolic value of products, have led countries to emphasise their distinctive characteristics. The branding and image of a nation-state "and the successful transference of this image to its exports - is just as important as what they actually produce and sell."This is also referred to as country-of-origin effect.
Nation branding is a developing field in which scholars continue their search for a unified theoretical framework. Many governments have resource dedicated to nation branding. Their aim is to improve their country's standing, as the image and reputation of a nation can dramatically influence its success in attracting tourism receipts and investment capital, in exports, in attracting a talented and creative workforce, and in its cultural and political influence in the world. Different ways that nation project their nation brand include export, foreign direct investment, and tourism. One example of exporting products is that the country Germany is known for their motor industry because famous car companies like Mercedes, Audi, and BMW are German companies. An example of foreign direct investments that help the nation brand are US companies building maquiladoras and other European countries having factories in different countries.
Nation branding appears to be practiced by many countries, including the United States, Canada, France, United Kingdom (where it is officially referred to as public diplomacy), Taiwan, Malaysia, Japan, China, South Korea, Singapore, South Africa, Australia, New Zealand, Israel and most Western European countries. An early example of this was the Cool Britannia approach of the early days of the New Labour government (following the Britain (TM) pamphlet by Demos's Mark Leonard), though this has since been replaced by a more credible Public Diplomacy Board. There is increasing interest in the concept from poorer states on the grounds that an enhanced image might create more favorable conditions for foreign direct investment, tourism, trade and even political relations with other states. Developing nations such as Tanzania and Colombia are creating smaller nation branding programs aimed at increased overall image and with the case of Colombia, changing international perception. Nation branding is seen as a part of Sweden's public diplomacy, especially with Brand Sweden. Sweden uses two main institutions, called the Utrikesdepartementet and the Swedish Institute, to study their nation branding. They wanted to present a good image through the press and also collect different reports on Sweden’s representations abroad. Different events and campaigns were also made to promote Brand Sweden, one example being the House of Sweden which was an embassy in the US. Another campaign was the Second House of Sweden which used the internet to introduce Sweden’s embassy virtually. Researchers in Sweden also studied the Nation Brand Index (NBI) results to collect data.