Globalization is the concept through which regional markets join in using a universal network to improve governmental ideas via communication, transport and trade. The concept is closely related to that of economic globalization which integrates national economies into the international economy. Such integration is achieved by trade, foreign direct investment, capital flows, and migration. Bhagwati (2004) observes that at a higher level it can incorporate the spread of technology and military presence. The ideology bears its continuity to economic, technological, socio-cultural, political and biological factors to a larger extent as Sheila (2004) points it out.
As a term it was first presented by Pastor Taze Russell, in what he termed as ‘corporate giants’ back in 1897. Economists and social scientists however came to use the term widely only in the 1960s. The term has elucidated a lot of definitions and interpretations claiming history to the great movements of trade and empire across Asia and the Indian Ocean to which Hopkins dates back to the 15th century (Hopkins, 2004).
Globalization assists in the diminution or eradication of constraints by States in relation to exchanges across borders. Further to this, the said diminution and eradication of State border constraints kindles an increase and integration of multifaceted global systems of production. This has ultimately led to improved levels of exchange of goods and services. Thomas Friedman is of the opinion that globalization is a growing phenomenon and with that will have enormous influence in the business organization and practice just like globalized trade, outsourcing, supply chaining and political forces have had in the past (Friedman, 2008). Globalization can thus be said to incorporate aspects such as global communication networks, global civil societies and also international flow of knowledge and information, as we’ve construed from the understanding of what it involves (Kim et.al. 2009). It has been accredited as Stiglitz (2006) points out, for its characteristic of sponsoring interdependence of market systems globally.
The model has had a great impact in the industrial sector in the world, Turkey included. This is because it has intensified access of foreign products due to its ability of generating worldwide production markets. This is boosted as globalization enables freer movement of products across national borders. The Times online, on February 10, 2008 noted that international trade in manufactured goods had risen to well over 100 times in the last 50 years.
Safe for the industrial sector, globalization also has an impact in Turkey’s financial sector. This is because it has opened it up to global financial markets. This factor has also enabled the country to better access to external financing for borrowers, evidenced by the huge borrowings in support of expanded levels of trade and investment that has characterized the early part of the 21st century. However, the said...