Foreign direct investment and its assessment with regards to Turkey

This study entitled ?Foreign Direct Investment and its Assessment with Regards to Turkey? is consisted of the subjects as international business operations and international firms, multinational companies, the internationalization process of businesses, types of foreign direct investment, FDI and Turkey.Within the first chapter of the study the theory of international business in a globalized world, the definition of international business and related notions, agencies conducting the international activities and factors contributing to international business are examined. In addition to these, the internationalization reasons of businesses and the risks (cultural, political, financial and commercial risks) that companies could confront in the process of internationalization are reviewed. As one can see, the first chapter of the study is about the concept of international business and other related topics in international business studies. The reason for this is that in a world where the concept of globalization is prevailing and national borders are declining gradually, the international business activities are impacting on countries and regions considerably with economic, financial, social, and cultural aspects. Additionally, upon the importance of the subject, the theory and issue of multinational companies are reviewed in chapter 1.The second chapter of the study is based on the internationalization and the internationalization models of businesses. Within the internationalization, the FDI, Phase and Network models are analyzed. Regarding to the explanation of the notion of FDI, the reasons promoting FDI, the positive and negative features of FDI and the effect of government policies on FDI are defined. Afterwards, it is dwelled on the types of FDI as international joint ventures, mergers and acquisitions, greenfield operations, turnkey projects, management contracting and portfolio investments as well as the impact of FDI flows in the world and expectations.The final chapter of the study is focused on FDI and Turkey, developments and potential impacts. The development of FDI in Turkey is scrutinized beginning from the import substitution period of 1950 -1980, the liberalization era of 1980 ? 2000 and the FDI entry after 2000s and its reflections are discussed. The biggest portion of FDI entry in Turkey realized after 2000s and this FDI entry realized parallel to the diversified privatization operations between 2004 ? 2010. However, the amount of 40 billion USDs acquired as a result of the sale of public facilities to foreign companies (privatization) and FDI entry are utilized to cover the budgets deficits and public debts. For, the FDI entry in Turkey within the period of 1980 ? 2010 are not sufficient to cover the gaps in GDP, foreign trade deficits, internal ? external debts and current account balance as well as does not enhance economic growth. Additionally, the econometric analysis made in the last part of the third chapter support this view. According to the econometric analysis made comprising the 1992:Q1-2007:Q3 period, FDI entry has no positive and enhancing impact on the economic growth, namely the GDP. Eventually, it could be stated that the FDI and privatization policies of Turkey shall be reviewed and changed in favor of our country.Key Words:1.International Business2.Multinational Businesses3.Internationalization Process of Businesses4.Foreign Direct Investment5.Turkey