When the decrease in global demand combined with the contraction in domestic demand, the export practice aimed at reducing the risk of exports lost its meaning.  Why does an established export company in Turkey?  In today’s competitive global environment, exporting is neither an easy task nor “as profitable” as it is thought to be.  Topics to be approached as follows: Turkey’s domestic market, especially as industrial products are concerned, our major export market, which we consider to be as competitive as we can in European Union countries.  Turkey’s domestic market, the economic theorist of “monopolistic competition” gave the name to identify the type of imperfect competition would be more appropriate.  There are many sellers in this market again.  Because entry into the domestic market in Turkey, through imports, is free to some degree.  However, the goods sold in the domestic market differed in terms of brand, quality, etc.  There is limited price competition and quality competition in this type of market.  In such markets, “usually” profit rates are higher than the competitive market.  But why are our companies striving to enter / hold onto foreign markets that are much more competitive, therefore less profitable and demanding?

 Risk reduction strategy

 Two different answers can be given to this question.  The first of these is that increasing the amount of production decreases the cost per unit.  In the case of production activities in which the phenomenon called “increasing returns on scale” in economics is in question, if the domestic market is not large enough, scale growth can be achieved by adding the foreign market to it.  This can contribute to increasing profitability through cost reduction per unit.  Undoubtedly, this does not apply to every production activity.  Sometimes technology does not offer “increased returns to scale”, sometimes the domestic market may be large enough.  The second answer is more general.  “Selling in the domestic market” and “export” can be considered as two different economic activities.  Both of these have risks.  Sales in the domestic market may decrease due to economic stagnation, the imposition of taxes on the goods produced, and changes in consumer preferences.  On the other hand, sales may be adversely affected by reasons such as intensifying competition in the foreign market and unexpected developments in cross exchange rates.  If “domestic and foreign markets are independent of each other”;  then, it can easily be shown that operating in these two markets can reduce the overall risk of the company.  Moreover, this conclusion is valid under certain conditions, even when the risk of the foreign market is higher than the domestic market.  So, for a company that wants to insure itself against any negative developments in the domestic market, turning to the export market is a meaningful strategy.  Therefore, in developing countries tend to export a portion of the domestic market as well as companies resident in Turkey.  Let’s call such companies “traditional exporters”.  This approach does not give the expected result when the assumption of the independence of domestic and foreign markets on which it is based is not valid.

Agricultural Trailers For Sale In Turkey –Big Power Capacity Of Trailers – Big Power Europe Export – Big Power Wide Range Manufacturing – Designed For The Strongest With Big Power – Durable and Distinguished Trailers – History Of Agricultural Trailers – Risk Reduction Strategy In Export – Tipper Trailers ___ Big Power Trailer – Turkey Agricultural Trailer Export – Turkey Solid Growth In Agricultural Industry – Type of Turkey___s Export –