INTRODUCTİON TO BUSİNESS

Entrepreneurs

Globalization

After 1980

Balance of trade

Reminders

Economies of scale

There are similarities in market demographics and income levels.

Importing

Universalism

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

Internationalization is a process which is basically described as operation across national borders. The correct answer is B.

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

An economic policy which defends replacing foreign imports with domestic products is called import substitution. The correct answer is A.

Balance of trade (BOT) is the difference between a country’s imports and its exports for a “given time period”. BOT is an important indicator showing strength of a country’s economy. The correct answer is B.

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

The critical success factors for MNCs emphasized in the literature are:

Starting with neighboring countries instead of overseas is a good decision for MNCs to decrease the risk. The correct answer is E.

The story of globalization in Turkey is quite different from industrialized Western countries. The state financed the industrialization processes through public banks and import substitution policies that shaped the economic activities until 1980s.7 Turkey had adopted a state-dependent and a closed economic regime during these years. The frequency of global interactions was very low.

The liberal reform policies in Turkey were adopted after 1980, thus have 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”.10 BOT is an important indicator showing strength of a country’s economy. 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.

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. The correct answer is D.