INTERNATIONAL TRADE

International Trade- Turkey

Table of Contents

Introduction2

Overview of International trade in Turkey2

Foreign Trade Statistics:3

Exports:3

The 10 groups of products with more exports in 2011:4

Major export markets in 2011:5

Imports:5

Turkish membership of international trade organizations:7

Turkish electronic company Samsung and its office in China7

Company Overview:8

Business Opportunity Analysis:8

Environmental Analysis:9

Competitive Analysis:12

Strategic Analysis:14

Conclusion15

References17

International Trade- Turkey

Introduction

The foreign trade sector in Turkey is one of the most important source of dynamic economic development. On the one hand, this is due to the relative failure of its own resource base, which accounts for the dependence of the Turkish economy from the world market (activities of the main branches of Turkish industry - from textiles to electronic - is largely determined by the availability of imported raw materials, energy, intermediate goods). On the other hand, the Turkish economy and its potential for significant industrial determine the energetic work of local firms to promote their products in foreign markets. That is why the main task for Turkey is to expand existing markets for exports and providing favourable conditions for domestic industries needed raw materials. The main items of Turkish exports are textiles and clothing, cars, citrus, food, spare parts, metal products, glass products, agricultural products. Main imports are petroleum, petroleum products, natural gas, nonferrous and ferrous metals, machinery, fertilizers, timber and lumber (Bickerton, 2011, Pp. 154-187). This paper discusses International Trade in Turkey in a Holistic context with reference to Samsun Turkey and its operation of production, R&D and other activities in China.

Overview of International trade in Turkey

In 2008, imports and exports of Turkey broke historical records: exports grew by 23 percent, reaching 132,000 million, while imports increased by 19 percent, getting 202,000 million dollars. In 2009, the year of the global financial crisis, Turkey was able to pocket 102,000 million dollars in exports and imports 141.00 billion. In 2010 exports grew 12 percent to reach 114,000 million dollars (Hay & Menon, 2007, Pp. 28-56).

Foreign Trade Statistics:

Millions of dollars

2005

2006

2007

2008

2009

2010

2011

Exports (FOB)

73., 476

85,535

107,272

132,002

102,143

113,883

134,969

Imports(CSF)

116,774

139,576

170,063

201,961

140,929

185,544

240,838

Trade Volume

190,251

225,111

277,334

333,963

243,072

299,428

375,807

Balance of trade

43,298

54,041

62,791

69,959

38,786

71,661

105,869

(Source: TurkStat)

There have been significant changes in the structure of exports. In 1995, Turkey joined the World Trade Organization (WTO), after which they signed an agreement with the EU that allowed it to join the CU on 1st, January, 1996 (Brohman, 1996, Pp. 107-130).

Exports:

In accordance with the policies implemented in the framework of a model of export-led development since 1980, exporting is an important factor in Turkey both in terms of quality and in quantity. Mainly from 1980 to mid-nineties, there have been great strides in market share represented by industrial products manufactured mainly from human capital, like iron and steel, textiles and clothing and foodstuffs. With the establishment of a CU with the EU in 1996, exports to Turkey began a new process of structural transformation. The development of recent years shows that production and exports have grown substantially in the high technology sectors, covering machinery and electrical and electronic equipment, and automotive. Moreover, you can also see that the market share of exports of manufactured industrial products has increased (Hill & Smith, 2005, ...