Effect of exchange rates fluctuations on international trade companies: A case study in Ankara

The main conclusion of the fluctuations in the exchange rates, in which is the fact that the real sector takes hedges ,cost-reducing measures, in order to avoid possible risks. These hedges can be in the form of reducing production, employment , and shifting existing funds to treasury products. While this strategy is an option for short-term solutions for firms, it can lead to moderate or even long-term contraction for the country's economy. In addition, as a result of fluctuations in foreign exchange rates, which affects to increases prices of products, as it known that Turkish economy depends on importation rather than exportation, leads to a reduction of investment. The purpose of this study is to conduct a comprehensive literature research for exchange rates fluctuations , and how to affects on the factories in Ankara. The significant result of this study, which is conducted to interviews which has done with 51 companies between June 2018 and September 2018, shows that the participating firms were not proactive in managing to risk of exchange rate, and were generally trying to reduce costs. In addition, while the exchange rate are accepted by the participating companies as a risk, they believe that this risk will tend to decrease in the medium term.