The effects of agreement of Customs Union with the European Union to upon competitive power of SMES in Turkey

With growing more and more the trend of globalization, Turkey?s achievement is to require the integration with the world economy. In this context, the entry to European Customs Union and the gaining candidate state statute according to the decisions of Helsinki almost accelerated this process. One of necessary study for the integration with the world economy is to develope new strategy and politics in light of the improvements in the world economy with the revising our politics relating to Small and Medium Size Enterprise (SME).This study is a descriptive thesis work prepared inorder to provide a better undestanding about SMEs ?specifically Turkish SMEs- (Small and Medium Enterprises). In this study, Turkish SMEs and EU?s SMEs were examined comparatively and the effective factors of the internationalization of the Turkish SMEs were examined with details. Furthermore, in the path of Turkish SMEs with Customs Union, conditions of competition with the EU?s SMEs were examined with details. The positive and negative effects of the membership of Customs Union and the candidacy of EU for Turkey and Turkish SMEs were shown with details.