Exchange rate changes and manufacturing profits in Turkey

ABSTRACT THE EXCHANGE RATE CHANGES AND MANUFACTURING PROFITS IN TURKEY BEGÜM AKIŞ Master of Business Administration Supervisor: Associate Prof. Dr. Turan EROL This study examines the extent of pass-through in export prices and emphasizing the relative importance of pricing-to-market effect on Turkish manufacturing profits. All firms, especially the exporters, must make a pricing decision when exchange rate changes. So, this study tests how Turkish exporters are responding to the conflicting objectives of mamtaining stable profit margins and stable export sales when the value of TL fluctuates. Keywords: exchange rates, pass-through, pricing to market, manufacturing profits.