International Parity Conditions and the Possible Impact on the International Business Operations

Abstract

There is not only one currency and an exact predictable parity for each currency in the globe. This makes the accomplishment of international business and trade operations complicated owing to the fact that the mandatory usage of strong currencies in international trade. However, business cycles, alternating macroeconomic variables, political conditions and government interventions impact on the value of currencies and international parity conditions. Turkey is at the convergence of Eurasia and serves as a trade route among many regions. It also derives a considerable part of its GDP from international trade operations. However, the variations in the international trade volume, foreign exchange operations and international parity conditions impact on the economic and commercial potential sweepingly. Thus, the objective of this paper is to review the international business and trade potential of the Republic of Turkey with respect to foreign exchange and international parity conditions depending on credible national and international publications.