Exchange rate policy and foreign trade for instance after 1980 Turkey

The exchange rates have an important role in the foreign trade policy tools in the countries where the liberal foreign trade policies have been applied. In the last few years, with the effect of globalism capital and price must on gained importance and this situation caused the countries to see the world on the only market. Turkey?s evaluating this process in a good sense to application of an economical politics that makes the power of competition come into fore in foreign trade of area.The study consist of three main sections. In the first section of the study, the features of exchange rate concept and applied exchange rate regimes are explanied. In addition the exchange rate theories in literature are explained.. In the second section , the relationship between the foreing trade and exchange rate policies is examined ın turkey. The third also the last section is due to the turkey economy.The impact of exchange rate systems and policies on foreign trade is determined by the overall state of the economy of the country, and the international relations in the sense that global economy is affected by advanced technology.Many studies on this particular subject have showed that the impact of exchange rates on foreign trade is either indefinite or ineffective. When only the exchange rate policy is used as a means for promoting the foreign trade the expected outcome cannot be obtained. In addition to such a policy, the other policies which encouraging foreing trade means should be used in concurrence Moreover, stability in macro economic terms has to be prevalent in the markets, and those markets have to be functionalized.Keywords:1)Exchange Rate3) Exchange Rate Policy5) Foreign Trade2)Exchange Rate Systems 4) Marshall- Lerner Condition 6) Bounds Test