The theory of international trade suggests that increasing number of countries participating in international trade serves to socio-economic expansion of these countries.

Globalization began with the tendency of first industrial firms to market their  goods to other countries during the late 19th century.

Import substitution is an economic policy which defends replacing foreign imports with domestic products.

The liberal reform policies in Turkey were adopted after 1980.

It has enabled global trade relations and flow of foreign investments into the country.

Balance of trade (BOT) is the difference between a country’s imports and its exports for a given time period.

Globalization differs than the internationalization process which is basically operating across national borders.

A country that exports more than it imports has a trade surplus. On the contrary, if a country imports more than it exports has a trade deficit.

A multinational corporation (MNC) is an organizational form, which has operations in more than two countries, and it consists of a central firm – usually in the home country- and branches or subsidiaries in foreign countries.

• Entering into complex markets to gain new knowledge.
• Recognition and reputation.
• Key strategic partnerships.

Corporate social responsibility (CSR) projects are a way of building recognition and reputation in a foreign country. It is important to seek for a trustworthy, legitimate, established, and a powerful partner in the target country.

It is not so meaningful to think about a strict distinction between national and international competition in today’s global economy. A local entrepreneur who owns a small market may anytime face with competitive pressures of international retail chains. There are important facts that should be considered by an organization, which has an intention to compete in international markets: size and production capacity are some of these factors.

Economies of scale is the cost advantage that arises with increased output of a product.

International competition refers to a complex network of multiple types of relations and interactions.

Emerging markets are the transition economies such as Brazil, Russia, India, Mexico, Nigeria, and Turkey that are characterized by high levels of growth despite insufficient infrastructure.

1. Whether to customize products or services in each local market or offer standardized products/ services.
2. Whether to employ the same generic competitive strategy everywhere or modify the strategy for each country.
3. Whether to locate a company’s facilities, distribution centers, and customer services operations for location advantages.
4. How to transfer a company’s resource strengths and capabilities among countries to secure competitive advantage.

The basic contributions of global business operations to a firm’s competitiveness are; cost reduction, spread of risk across wider environments, to capitalize core competencies, access to new customers, and valuable natural resources.

Exchange rate is the number of units of one currency that must be exchanged for a unit of the second currency.

Taxes, surcharges, or duties arranged against imported goods are known as tariffs.

Following strategy options are frequently used to compete in foreign markets:
• Exporting
• Licensing
• Franchising
• Global Strategy

The strategic choice for a global strategy is to employ essentially the same strategy in all countries.

Glocalization is a kind of synthesis between globalization and local responsiveness.

Purposes of strategic alliances are: joint research efforts, sharing technology; joint use of production on distribution facilities; and marketing one another’s products and services.

Culture can affect how managers lead, hire, and compete in various countries.

Ethical values are individuals’ moral judgments about what is right or wrong.

Cultural relativism refers to the approach that a country’s own unique culture, laws, and business practices determine ethical behavior in a country.