It is a strong form of diplomacy where a country negotiate while making it clear that the options and power of military might are left open. It is like by being bullied by big boys in the international arena. It comes at the backdrop of the realization that negotiating with a weak military is futile in the international arena. It is founded on the principles of realism.
During the War of 1812 (1812–1814), the British blockade of U.S. ports almost completely stifled export trade. The blockade followed a general worsening of American commerce, which had declined by almost one-fifth between 1807 and 1809.