290 10 3494 https://omeka.ibu.edu.ba/files/original/68ee6cb6345fd484a64c554e4f688796.docx fc2c504d2ef2312cd6c3beb76390b875 https://omeka.ibu.edu.ba/files/original/dce70ddc9cfe7b958262a401f38d1a84.pdf dd81d8fa8a2cfa0bc1faa9925cd577e7 PDF Text Text THE IMPORTANCE OF COST-BENEFİT ANALYSİS İN PUBLİC INVESTMENTS: EXAMPLE OF HYDROELECTRİC ENERGY Ali Yavu Suleyman Demirel University, Isparta, Turkey aliyavuz@sdu.edu.tr Ceyda Şataf Suleyman Demirel University, Isparta, Turkey ceydasataf@sdu.edu.tr Dilek Göze Kaya Suleyman Demirel University, Isparta, Turkey dilekkaya@sdu.edu.tr Keywords: Cost-benefit analysis, public investments, hydroelectric energy. ABSTRACT In developing countries, efficiency in public expenditures, especially public investments, fulfilling of their expected functions, is related to high efficiency in investments. It is obligatory to measure the efficiency of public investments with scientific criteria whose monetary values and benefits are measurable. While the state wants to do investments in areas useful for public, it has to estimate and decide the investment’s cost and income according to currency’s present value. In public investments cost price and total income can’t be estimated different from market prices? In this study, choice between alternative investment projects according to the criteria cost-benefit analysis of making, the determination of the “optimum investment amount” has meant. Hence, the development of investment policy based on cost-benefit criteria is important for efficient use of resources. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2138 Title A name given to the resource THE IMPORTANCE OF COST-BENEFİT ANALYSİS İN PUBLİC INVESTMENTS: EXAMPLE OF HYDROELECTRİC ENERGY Author Author YAVU, Ali SATAF, Ceyda GOZE KAYA, Dilek Abstract A summary of the resource. Keywords: Cost-benefit analysis, public investments, hydroelectric energy. ABSTRACT In developing countries, efficiency in public expenditures, especially public investments, fulfilling of their expected functions, is related to high efficiency in investments. It is obligatory to measure the efficiency of public investments with scientific criteria whose monetary values and benefits are measurable. While the state wants to do investments in areas useful for public, it has to estimate and decide the investment’s cost and income according to currency’s present value. In public investments cost price and total income can’t be estimated different from market prices? In this study, choice between alternative investment projects according to the criteria cost-benefit analysis of making, the determination of the “optimum investment amount” has meant. Hence, the development of investment policy based on cost-benefit criteria is important for efficient use of resources. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/99e291888fd3fea30a1fd52a2a0895ed.pdf cb1d00e3ec4a22619028199c2b9ea55f PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo The Importance of Environmental Accounting for Sustainable Development Hasan ŞENOL Lecturer, Isparta, Turkiye hassenol@sdu.edu.tr Ahmet AKTÜRK Lecturer, Isparta, Turkiye akturk@sdu.edu.tr Abstract: It is not possible to say that, while meeting its endless demands and needs, humankind has made use of the ecological environment economically which is one of the sources of the community. The signs that have seen over the last ten years shows that, due to this consumption desire, humankind will lead the world up to calamity faster than it is estimated. This course of events has to be stopped urgently for the sake future generations. At this point, the concept of sustainable development plan becomes important. For sustainable development all sections of society has great roles. Enterprises are one of these sections. The design of accounting information system concerning about environmental costs emerged during the production period of the enterprises is a necessity of this exquisite approach. Introduction It is known that environmental problems have shown an increasing tendency by means of technological developments and application of them. The fact of globalization being developed rapidly since 1990s not only has led for environmental awareness to become widespread but also has been enabled for nations to act together for matter of environmental protection. Accounting having universal general rules and double entry bookkeeping used together by all nations and ensuring today universality of the accounting have constantly been interested in environmental issues within its own logic. (Güvemli & Gökdeniz, 1996, p.23) Fundamentally uniform chart of accounts and financial statements are always discussed in finance and own interest of the corporation, interest of partners, third party interest because of liabilities and state interest as natural stakeholder have been put forward. Actual “natural stakeholder” environmental issues within these interest groups have not taken the place as necessary yet. Despite all, the concept of “environmental accounting” has been widespread gradually due to effect of being emergent much more in very developed countries. (Güvemli & Gökdeniz, 1996, p.23) To ensure sustainable development, it is seen that environmental accounting is a promising approach in terms of providing information to assist in ensuring the equilibrium between economy and environment. (Mutlu, 2007, p.169) 1. The Concept of Environmental Accounting In consideration of rapid deterioration in environmental conditions and concern of closing to limits of the world, it is required that business managers shall change their point of view to ecological environment as soon as possible and shall evaluate the ecological environment as an crucial factor in the taking of decision related to operating activities. (Nemli, 2009) Nowadays environmental managers and business managers in the industry encounter ever increasing demands of shareholders, consumers and law maker related to environmental performance. Moreover, environmental performance of product and corporation during competition at the market is frequently stated. (Anex & Englehardt, 2001, p.99 It is possible to describe the concept of “environmental accounting” having increasing importance with such commercial reasons. (Güvemli & Gökdeniz, 1996, p.23-24) “Environmental accounting: description of the environment by measuring its negative effects and prediction of them in the accounting system applications.” Corporation managers also have to pay attention to such demands into strategic decisions and develop more sensitive management approach to environment in order to catch up aforesaid change. Environmental management is an understanding adapting by enterprises that take into consideration ecological environment as 159 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo an important matter in the decision procedures, aim to minimize or abolish entirely the damage to the environment because of its activities, and change design and packaging of its products as well as its manufacturing process in this perspective, make a endeavor for replacing of the philosophy of protection of ecological environment into culture of the enterprise and fulfill its duties for society within the scope of social responsibility. (Nemli, 2009) In the Table 1, it is listed about comparison between traditional management and environmental management. Table 1. Traditional Management-environmental Management Comparison In objectives In products In organization In environment In functions of business Traditional Management Economic growth and profit Return for partners Products designed for function, style and price Packaging causing unnecessary waste Hierarchical structure Decision-making from top to bottom Centralization in decision-making Having a good command of environment Managing of the environment as a source Evaluation of pollution and wastes as externalities The marketing aims to increase the consumption. Financing asks for maximizing the profit in the short term. The accounting concentrates on traditional costs Management of human resources targets to increase efficiency of labor Environmental Management Sustainability and standard of living Welfare of partners Environment friendly products designed for environment Non- hierarchical structure Participatory decision-making Decentralization in decision-making Being harmony with nature Becoming aware of natural resources not being unlimited. Managing and minimizing pollution and wastes. The marketing is for consumer training. Financing aims the long term sustainable growth The accounting concentrates on environmental costs. Management of human resources ensure health and security at work. Source: Nemli, 2009, www.sbf.istanbul.edu.tr Everyone is responsible for protecting and developing the environment being subject to different evaluations from different perspective and becoming one of today crucial problems. Because the common interest in the protection of environment is available, everyone is affected from environmental problems, environmental assets belong to all society, the precautions to be taken concern the common interest and the effective implementation of these precautions depends on participation of everyone, the accounting also has duties in this matter. (Erençin, 2001, p.69) 2. Environmental Accounting in the Context of Sustainable Development The concept of sustainable development was stated at first in the report of Our Common Future prepared by Commission on Environment And Development of United Nations in the year of 1987 and has become prevalent. In this report, the sustainable development is described as satisfaction of today needs without making concessions from satisfaction of needs of future generations. (Haftacı &Soylu, 2007, p.111) In this report, it is stated that environmental problems has threatened the earth and all people of both developed and developing countries, crisis over the world are interrelating and environmental problems could not be differentiated from other problems and it is also declared that development in the current evaluation level of the humanity would be ended after a while and this would be prevented by understanding of “sustainable development” and development of countries would be ensured via common quest of people. (Haftacı &Soylu, 2007, p.112) From the perspective of these developments, enterprises have taken important steps in the subject of environment since beginning of 1990s. However, progresses related to this matter in the field of accounting and finance was reluctant and superficial at the beginning. It is known that unless a realistic movement and change in the economic structure is supported by accounting and finance practices, it would not be successful. For this reason, contributions and achievements of corporations in this subject have been late. (Akün, 1999, p.152) However, by the understanding of “better lose the saddle than horse”, enterprises designing their accounting system organizations without taking environmental costs into consideration should fulfill this requirement as soon as possible. 2. Categories of Environmental Costs As a result of interaction between management strategies and environment responsibility of enterprises in recent years, environmental accounting information system is required in order to evaluate the environmental 160 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo impacts and obtain information being necessary in the various decisions of the enterprise. Considering environmental convenience, business managers need the data of environmental costs while deciding some matters like product diversity and pricing in the management strategies to be determined, choosing of production input, evaluations of options of waste management and projects of pollution prevention. Environmental costs are emerged in conjunction with many different activities and complex fields and within a large time interval. (Akün, 1999, p.152-153) It is possible for environmental costs to classify as direct costs, administrative costs, product design costs, research-development costs, costs for supporting social projects out of enterprise and other costs. Certain examples related to these costs are available in the Table 2. This table includes most of important environmental cost categories. (Li, 2001, p.59) Table 2. Environmental Cost Classification Cost classes Direct Costs Example *costs of reduction of damages to environment and air because of production process. Including Costs for air, water and soil pollution prevention,/ costs of prevention of noise, vibration, smell and land subsidence. *Costs of prevention of climate change, global environment protection activities resulted from protection of energy and water sources as well as protection of ozone layer and costs of protection of sources. *Costs of reduction, recycling, incineration and recovery of industrial hazardous wastes and solid nonhazardous wastes Administrative *Costs of environmental training of employees. *costs of establishment and implementation of environmental management process for instance costs of costs external certification related to management system *Costs of monitoring and measuring of environmental burdens and recovery works *Additional costs for purchasing of products not damaging the environment *additional costs for purchasing fuel and other raw materials, such as activities for making harmful fuels and raw materials as environment friendly. *Costs of labor for integration above five points. Product design *costs of recycling/re-composition and collection of the product. * Costs of recycling/re-composition and collection of the package and cases. costs *Additional costs for more environment friendly product design changes * Additional costs for production of more environment friendly package and packets * Association of above four points with other costs, and payments to trade cooperation. *Labor costs for integration of above five points Research and *costs of research and development for design of more environment friendly products. developments *costs of research/development/, design/planning during process changes for development of environmental performance costs * costs of research and development for making distribution and sale system of corporation as environment friendly * Labor costs for above mentioned activities *costs of forestation, beautification, landscape and other development works inside and outside of Costs for enterprise assets. supporting social projects *supporting of local committee and environmental activities. Such as financial support, seminar and informing. out of *Participating and supporting environmental groups enterprise *costs of preparation of reports to be represented to public *costs for advertisements related to environment * Labor costs for integration of above five points *costs for soil improvement works and environmental compensations Other costs *costs for value and compensation related to settlement *costs for environmental lawsuits *Charity or new burden/taxes related to environment *other environmental costs not mentioned above. Source : Li, 2001, p.60 3. Application Terms and Process of Environmental Accounting The most general condition for application of environmental accounting into an enterprise is to harmonize enterprise and environment. Minimum conditions that an enterprise must have for application of environmental accounting are mentioned below; (Uğur, 2006, p.58) • Ensuring of support of upper level management 161 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo • • • • • Placing of environmental culture Acceptance of the fact that corporation activities damage the environment, Making evaluation of environmental impact at all projects, Providing environmental training to all personnel, Ensuring of integration in the meaning of description about what is measured and why it is required to be measured for. • Technology for being able to measure and keep necessary information, • Reporting system to explain the performance measurement information required to interest groups., • Supervising system to ensure reliability of reported information., • In the cases of impossibility of all cost-sharing, demand of acceptance of estimations., • Comprehensive description of concepts like environmental assets, debt, contingent liability etc , • Other (demand, information and opportunity) After fulfillment of application conditions of environmental accounting, application process is realized. Application process consists of nine stages. These are; (Uğur, 2006, p.60) • Development of modeling of input-output analysis for usage of material and energy, • Description and understanding of environmental costs, • Monitoring and reporting of non-financial data belonging to primary material and energy flow at the enterprise., • Monitoring and reporting of environmental costs, • Adoption of decision making models and approaches being predicated on environmental costs and sensitivity, • Usage of advanced technologies for distribution of environmental costs to organization units, process and product costs, • Extending of scope of environmental accounting and analysis via lifelong valuation and value chain analysis, • Reaching to environmental perfection via external reporting and reporting the evaluation in the given undertaking to interest groups, • Undertaking for reaching the target of sustainable development. Understanding of “sustainability” should be together “environmental perfection” mentioned in 8th stage. Because environmental perfection are focusing on reduction of wastes and pollution in addition to effective usage of sources, while sustainable development predict on fair distribution of environmental costs and benefits among people and especially surveillance of rights of both today and future generations in addition to this understanding. As a consequence, because nine steps predicted for environmental accounting are not certain, they would be increased or decreased according to situation of the enterprise. However, steps mentioned here are highly necessary and helpful for almost every enterprise. On the other hand, enterprise mush accept following understanding for taking said steps: it should also participate to operation decisions like natural environment, strategic planning, product development, budgeting of capital, in other words this should not be allocated to only single and separate department and should be taken into consideration in all department of enterprise. (Uğur, 2006, p.75) 4. Conclusion Tangible applications and politics are required for going beyond saying of dependency to sustainable development principles and significance of natural environment as empty words. These politics should be determined as soon as possible and legal proceedings shall be realized for fulfillment of accepted politics. In this context, using of tangible application tools is for implementation of sustainable development. Environmental accounting is a tangible tool in the application of sustainable development. Remember that applications of environmental accounting should be carried out in the base of volunteering by demonstrating the emergency of environmental problems as justification and in the scope of situation and interest special to individuals-societies-nations instead of methods based on discipline. Environmental accounting to be called as “green accounting” is also requirement of social responsibility of the enterprises. Considering in long term, it is anticipated that enterprises having the sense of social responsibility would be accepted by society being more conscious rather than the past and this would increase its market value. References Akün, L. (1999) Çevre Muhasebesi: Genel Bir Bakış, Muhasebe Bilim Dünyası Dergisi, Cilt:1 Sayı:1, 145-155 162 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Anex, R.P.  Englehardt, J.D. (2001) Application of a Predictive Bayesian Model to Environmental Accounting, Journal of Hazardous Materials A82, 99-112 Erençin, A. (2001) Çevresel Yönetim Sürecine Katılım, Abant Đzzet Baysal Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Cilt:1, Sayı:2, 69-77 Güvemli, O.  Gökdeniz, Ü. (1996) Çevre Muhasebesindeki Gelişmeler, Muhasebe Öğretim Üyeleri Bilim ve Dayanışma Vakfı Bülteni, Sayı:4, 23-27 Haftacı, V.  Soylu, K. (2007) Çevre Kirlenmesi ve Çevre Koruma Bağlamında Çevre Muhasebesinin Önemi, Muhasebe ve Finansman Dergisi, Sayı:33, 102-120 Li, L. (2001) Encouraging Environmental Accounting Worldwide: A Survey of Government Policies and Instrument, Corporate Environmental Strategy, Vol. 8, Iss. 1, 47-57 Mutlu, A. (2007) Sürdürülebilir Kalkınma ve Çevre Muhasebesi II, Muhasebe ve Finansman Dergisi, Sayı:34, 162-173 Nemli, E. (2009) Çevreye Duyarlı Yönetim Anlayışı, http://www.sbf.istanbul.edu.tr/dergi/sayi23-24/17.htm Uğur, K. (2006) Đşletme-Doğal Çevre Đlişkilerinin Mali Tablolar Aracılığıyla Raporlanması ve Denetimi, Sermaye Piyasası Kurulu Yayın No:201, Ankara 163 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 162 Title A name given to the resource The Importance of Environmental Accounting for Sustainable Development Author Author ŞENOL, Hasan AKTÜRK, Ahmet Abstract A summary of the resource. It is not possible to say that, while meeting its endless demands and needs, humankind has made use of the ecological environment economically which is one of the sources of the community. The signs that have seen over the last ten years shows that, due to this consumption desire, humankind will lead the world up to calamity faster than it is estimated. This course of events has to be stopped urgently for the sake future generations. At this point, the concept of sustainable development plan becomes important. For sustainable development all sections of society has great roles. Enterprises are one of these sections. The design of accounting information system concerning about environmental costs emerged during the production period of the enterprises is a necessity of this exquisite approach Date A point or period of time associated with an event in the lifecycle of the resource 2009-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/eb62d6591cd1a9c3cdf70576304db9b3.pdf aa1f2d32ce135cb91f0d9a1e232f4e48 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Sarlija, N., & Gerec Z, A. (2008). Kratak pregled Basela 2. Retrieved March 20, 2012, from Economic Faculty of Osijek: http://oliver.efos.hr/nastavnici/nsarlija/projekti/doc/Kratak%20pregled%20Basela%202.pdf The Importance of Environmental Accounting in the Context of Sustainable Development and Within IFRS Evaluation Hasan Şenol, Hakan Özçelik Süleyman Demirel University, Isparta, Turkey E-mails: hasansenol@sdu.edu.tr, hakanozcelik@sdu.edu.tr Abstract Nowadays, companies cause a lot of environmental problems because of profit maximization, the endless needs, rapidly advancing technological developments, unconscious consumption of natural resources, as they execute their operations. At first glance, these efforts in order to remove environmental pollution means additional cost to companies in the short term nevertheless they can have a chance of cost minimization in medium and long term and even additional income in this process. To meet the needs of business management and related people about the enviroment, enviromental accounting has started up. The study of TAS/TFRS accounting in the context of the enterprises is focused on enviromental accounting and its importance, reflecting the financial progress on enviromental sensitivity reports and sharing those info with the community. There is no relevant TAS/TFRS on the accounting for and the reporting of environmental costs within the existing set of TAS/TFRS. Because, the accounting principles set out in the existing set of TAS/TFRS are already adequate to deal with the accounting for and the reporting of environmental costs. Also, in our study various suggestions were made for he healthy functioning of enviromental accounting. Keywords: Turkish Accounting Standards, Turkish Financial Reporting Standards, Environmental Accounting, 1.INTRODUCTION The main goal of economic development and welfare, environmental balance and sustainable development model has led to awareness of nature should be protected. Optimum use of resources being wasted, the effectiveness of natural resources, environmental protection and economic growth and environmental quality of the flood to provide a working model of integration. Sustainable development, social, ecological, economic, spatial and cultural dimensions of a concept (Yıldıztekin, 2009:368). When environmental problems that appeared together with industrialization process have reached serious levels round the world, preventative or decremental solutions for these problems have been sought by developed countries. These environmental problems experienced with industrialization caused a better understanding of importance of sustainable 81 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo development concept with time. As a result of increased sensitiveness about environment, environmental accounting approach appeared. Although the environmental pollution is a common problem of all countries, the importance of environment has been understood in recent years. Industries are becoming progressively more aware of the environmental and social liabilities pertaining to their operations and products. In addition to social pressure, accounting and especially environmental costs are critically important to form this environmental awareness. In the 1970s, environmental accounting has gained increasing significance, particularly in Western countries. The Environmental Accounting research has focused on “Sustainable Development” and aimed to provide balance between economy and ecology (Lazol& Muğal&Yücel, 2008:56). 2.SUSTAINABLE DEVELOPMENT The concept of sustainable development was stated at first in the report of Our Common Future prepared by Commission on Environment And Development of United Nations in the year of 1987 and has become prevalent. "Sustainable Development" a development model that tries to ensure integration between the economy and the environment. Sustainable development, the present generation without compromising the ability of future generations to meet their own needs to meet the needs identified as a development approach. In other words, without a reduction of the natural capital stock of today's generations to future generations that they have the same welfare level (Çetin, 2006:2). In realizing sustainable development governments, NGO’s and all other economic actors have important roles in an international scope. Sustainable development has the following historical processes.       1972 Stockholm: The United Nations Conference on the Human Environment 1976 Habitat-1 Meeting 1987 Brundtland Report, Our Common Future (defined sustainable development) 1992 The United Nations Rio Conference 1997 Rio+5 Summit 2002 Johannesburg Summit (Rio+10) The concept of sustainable development, business decision-making over the last decade of planning, social justice, environmental protection and economic development have expanded by including the importance of real-time (Rondinelli& Bery, 2000). 3.ENVIRONMENTAL ACCOUNTING The importance of environmental accounting is increasing because of increasing of environment problems, economic, social and technological developments. Environmental accounting which is for sustainable development is required. The term environmental accounting has many meanings and uses. Environmental accounting can support national income accounting, financial accounting, or internal business managerial accounting (EPA, 1995:1). Environmental accounting system as include both national and business accounting, and deals with both financial and non-financial information (Schaltegger, 1997:87). Environmental accounting, accounting and demonstration of financial statements events related to the environment of financial qualities. Environmental accounting defines as the process of environment-based categorization of business activities, collecting, analyzing and then monitoring this environment-related 82 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo activities, then put all these information into business balance sheet to help an organization’s decision making (Tüsiad, 2005:18). EA is a broad term which can be used in various contexts such as (IFAC 2005):  The evaluation and disclosure of environment-related financial information for financial accounting and reporting purposes;  The evaluation and use of environment-related monetary and physical information, that is, EMA;  Full Cost Accounting (FCA) which involves the estimation of external environmental impacts;  Natural Resource Accounting (NRA) which is accounting for the monetary and physical flows and stocks of natural resources;  The aggregation and reporting of accounting information, including natural resource accounting and other information, at the organization-level for natural accounting purposes;  In the broader context of sustainability accounting which requires consideration of environment-related monetary and physical information. 3.1.Scope of Environmental Accounting The scope of Environmental Accounting is very broad . It includes corporate level, national & international level. The following aspects are included in EA (Chauhan, 2005:721): 1. From Internal point of view investment made by the business sector for minimization of losses to environment. It includes investment made into the environment saving equipment/devices. This type of accounting is easy as Money measurement is possible. 2. From external point of view all types of loss indirectly due to business operation/activities. It mainly includes:  Degradation and destruction like soil erosion, loss of bio diversity, air pollution, water pollution, voice pollution, problem of solid waste, coastal & marine pollution.  Depletion of nonrenewable natural resources i.e. loss emerged due to over exploitation of nonrenewable natural resources like minerals, water, gas,etc  Deforestation and Land uses. This type of accounting is not easy, as losses to environment cannot be measured exactly in monetary value. 3.2. Forms of Environmental Accounting There are four form of environmental accounting. These are; Environmental Financial Accounting (EFA), Environmental Cost Accounting (ECA), Environmental Management Accounting (EMA), and Environmental Nation Accounting (ENA). EFA, ECA, and EMA are related to corparate (business) accounting. 3.2.1 Environmental Financial Accounting (EFA) Environmental financial accounting (EFA), data about financial events collects, analyzes, records and reports. Data of EFA make up generally environmental cost. Environmental information of business is shown in financial statements by means of EFA. 83 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Financial Accounting with a particular focus on reporting environmental liability costs and other significant environmental costs (Chauhan, 2005:721). Environmental accounting, financial accounting measurement procedures to apply carefully (Gray&Bebbıngton &Walters, 1993:7). 3.2.2 Environmental Cost Accounting (ECA) An advanced step of development of environmental accounting is development of environmental cost accounting (ECA). Cost accounting is defined as use of the accounting record to directly assess costs to products and processes. In this approach, costs are accounted for by their specific causes. Environmental cost accounting directly places a cost on every environmental aspect, and determines the cost of all types of related action. Environmental actions include pollution prevention, environmental design and environmental management. Past approaches on environmental impacts were based mainly on environmental cleanup costs and past product disposal (Yakhou & Dorweiler, 2004:68). Environmental costs comprise both internal and external costs and relate to all costs occurred in relation to environmental damage and protection. Environmental protection costs include costs for prevention, disposal, planning, control, shifting actions and damage repair that can occur at companies and affect governments or people (United Nations, 2001:11). The IFAC (2005) categorized environment-related costs into four types as follows, claiming that this categorization is based on widely accepted international practice and best practice (IFAC, 2005:12-13): Environmental activity type costs such as waste prevention and control; Costs that represent traditional accounting such as labour and materials; Environmental domain type costs such as land, air or water; and Costs which reflect data visibility in the accounting records such as hidden and obvious costs. 3.2.3 Environmental Management Accounting (EMA) Environmental management accounting (EMA) is defined as the generation, analysis and use of financial and related non-financial information, to support management within a company or business . EMA integrates corporate environmental and business policies, and thereby provides guidance on building a sustainable business (Yakhou&Dorweiler, 2004:68). EMA is broadly defined to be the identification, collection, analysis and use of two types of information for internal decision making (UN, 2001:7-10): - Physical information on the use, flows and destinies of energy, water and materials (including wastes) and Monetary information on environment-related costs, earnings and savings. Management accounting with a particular focus on material and energy flow information and environmental cost information. This type of accounting can be further classified in the following subsystems (Chauhan, 2005:720): - Segment Environmental Accounting: This is an internal environmental accounting tool to select an investment activity, or a project, related to environmental conservation from among all processes of operations, and to evaluate environmental effects for a certain period. 84 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo - Eco Balance Environmental Accounting: This is an internal environmental accounting tool to support PDCA for sustainable environmental management activities. Corporate Environmental Accounting: This is a tool to inform the public of relevant information compiled in accordance with the Environmental Accounting. It should be called as Corporate Environmental Reporting. For this purpose the cost and effect (in quantity and monetary value) of its environmental conservation activities are used. 3.2.4 Environmental National Accounting (ENA) National Level Accounting with a particular focus on natural resources stocks &flows, environmental costs &externality costs etc. Need of Environmental Accounting at Business Level: It helps to know whether business has been discharging its responsibilities towards environment or not (Chauhan, 2005:721). Evaluation of the Environmental Accounting In the Framework of TFRS IAS / IFRS, preparers of financial information in the information recording and reporting process and set of standards published in order to create a common language between users. The new Turkish Commercial Law (TCL), according to Small and Medium Scale Enterprises (SME) commercial books of business while remaining on the quality of individual and consolidated financial statements of the editing, Turkey Accounting Standards Board (TASB), issued by Accounting Standards in Turkey, the accounting conceptual framework which is an integral part of these interpretations and principles and apply them must comply exactly. In small and medium sized enterprises SME / TFRS subject.Large-scale enterprises involving TAS / TFRS in terms of environmental accounting, environmental accounting in many places, although the referral to be seen whether a standard is specifically designed for environmental accounting. Businesses related to the accounting standards that may be relevant, the following is stated on the environment (Aktürk, Akcanlı, Şenol, Akyüz, 2011:818-819).       Conceptual Framework of Financial Reporting, according to the standard required bybusiness information users can produce all kinds of information are emphasized. Accordingly; TAS/ IFRS in preparation of any report regarding environmental accounting, although there is no obligation to prepare such a report does not seem an obstacle. IAS 1 Presentation of Financial Statements; according to the standard of management can prepare a report describing the company financial performance. Especially in industries where environmental factors are important, environmental factorsdescribed in the various reports issued emphasized. IAS 16 Property, Plant and Equipment; environmental reasons obtain it focuses on items of tangible assets. In this context it considers appropriate in relation to a business environment to acquiretangible fixed assets and depreciation reserve seem an obstacle. IAS 36 Impairment of Assest; according to the standard as a business accessible to the environment-relatedimpairment of tangible and intangible fixed assets if the asset's carrying amount is reduced to its recoverable amount. The impairment loss is treated as a demotion. IAS 37 Provisions, Contingent Liabilities and Contingent Assets; according to the standard, as a result of damage to the environment is stated to leave provision for fines and cleanup costs. IAS 38 Intangible Assets, according to the standard in line with IAS 16 in respect of a business environment, allowing acquire the intangible assets. 85 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Businesses, which will come into force in July 2012 according to the provisions of the new TCL, environmental accounting, including accounting practices of all TAS / IFRS in accordance with will. Table 1: Environment related financial reporting standards IFRS/IAS number Title and/ or description Relevant paragraph(s). Paragraph numbers in parenthesis Remarks Framework Framework for preparation & presentation of financial statements Accountability (14), relevance (26), materiality (29 &30), substance (35), neutrality (36), prudence (37), completeness (38), liabilities & obligation (60), capital maintenance (81), probability (85), measurement reliability (86), recognition of liabilities (91) Statement to the effect that sustainability is within the bounds of the conceptual framework of IASB and FASB IAS 41; Specialized industries IFRS 6 Exploration & evaluation of mineral resources Paragraph (11): requirement for provision and contingencies IFRIC 3 (withdrawn) Emission rights allowances Several paragraphs deal with whether government allocated rights; and the accounting treatment at the start of emission, and the setting aside of provisions. IAS 20 Government Grants IFRIC 5 Jan 2006 Decommissioning, restoration environmental rehabilitation funds Sector’s sensitivity to the environment. See ISO classification and Wiseman’s disclosure scores. and Initial acquisitions of emission rights & allowances recorded as assets whose valuations are subject to impairment tests. & Purpose of fund (1), voluntary & required contribution to the fund (2), geographically dispersed sites (2), independent trustees, accounting for interest in the fund (7), obligations to make additional contributions (10), contingent liability (10), reimbursement rights 86 Refer to statistics about emissions; production of pollutants; toxic waste disposal systems, ground water pollution & land degradation; depletion, industrial accidents; environmental impact studies. Kyoto Agreement, Copenhagen Summit; Agreement versus treaty; efficiency of national and global allocation systems, speculation and transferability of emission rights; whether climate change has o boundaries; markets for trading emission and similar rights and their derivatives; sovereign rights; global shared databases (REA). Government grants could be influenced by the politics of the day. Government can over/under supply the rights certificates; endemic corruptions in the public sector might frustrate the system. Disclosure of the size of the fund; arms length of the trustees; plans for additional contributions; responsibility for past degradations; adequacy of the fund. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo (BC 12) Core principle (1), nature of an operating segment (5), aggregation criteria (12), quantitative thresholds (13), disclosure (20), profit/loss/ assets and liabilities (23), measurement (25), geographical information (33) IFRS 8 Operating segments IAS 27, IFRS 3, IAS 28 and IAS 31, SIC 12 Consolidation, investments in mergers and acquisitions, interests in joint ventures and associates; consolidation of special purpose entities Several paragraphs relate to ownership, risk, reward, and significant influence. IAS 37 Provisions, contingent liabilities & contingent assets Several paragraph that require charging current earnings for setting aside normal provisions and contingent liabilities. IAS 8 Accounting policies, changes in accounting estimates and errors Accounting policies (10), retrospective application (22), warranty obligations (32 &33), errors (41), prior period errors (49),, impracticability of retrospective adjustments (51, 52&53) IAS 1 Presentation of financial statements IFRS 1 First time adoption of IFRS Material omissions (7); purpose of financial statements (9), fair presentation (15), rectification of accounting policies (18), going concern (25), provisions (54), estimation uncertainty (125) Accounting policy 97), fair value (16), compound financial instruments (23), parents, subsidiaries, joint ventures & associates (24), changes in decommissioning, restoration and similar liabilities (25E), non IFRS comparative information (36), reconciliations (39) IFRS 7, IAS 37 & IAS 39, IFRS 9, IAS 38 Financial instruments disclosure, presentation and recognition and measurement, intangibles & impairment For a global company whether its branches and subsidiaries are operating in environmentally sensitive sectors; and whether the segment meets the quantitative threshold, or whether it is required to prepare consolidated financial statements, and whether its segments meet international standards. Group & consolidated statements are prepared for listed legal entities. Listed and unlisted companies might be sued for violating environmental standards in countries where their segments operate/operated in the past. This in turn might trigger an unbundling wave. Absence and inadequacy of provisions suggests earnings inflation which in turn affects intrinsic (fundamental) values of equities. The extent to which past earnings require restatement, and how this is going to be shown in past, present and future financial statements (retrospective & prospective adjustments). Minimum set of information that must be included in the comprehensive financial statements of environmentally sensitive companies. Fair value of environment related assets, liabilities and provisions. Disclosure of past and present environment related risk(s); qualitative and quantitative description of the effective and non effective hedging strategy; fair value of carbon derivatives and other environment related assets and liabilities. Source: Negash M., IFRS and Environmental Accounting, (December 1, 2009) 87 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Available http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1516837 4.CONCLUSION Environmental accounting is a tangible tool in the application of sustainable development. Environmental accounting to be called as “green accounting” is also requirement of social responsibility of the enterprises. The importance of environmental accounting is increasing because of increasing of environment problems, economic, social and technological developments. Environmental accounting is a tangible tool in the application of sustainable development. Environmental accounting to be called as “green accounting” is also requirement of social responsibility of the enterprises. Reporting of financial transactions have been recorded and concerned about environmental activities has become a necessity. This reporting process is accomplished through environmental accounting. Environmental accounting practice between businesses and the public production form communications about environmental aspects. This will provide an important contribution to sustainable development. The most important element of environmental accounting environmental costs. Focus on the environmental costs, environmental costs will be controlled facility. According to the types of environmental costs should be included in the accounting information system. Environmental costs (Environmental activity type costs, Costs that represent traditional accounting, Environmental domain type costs, Costs which reflect data visibility in the accounting records) have been recorded according to the types of expenses according to their functions should be reflected in costs and expenses of the period. REFERENCES Aktürk A. & Akcanlı F. & Şenol, H. & Akyüz, Y. (2011). The Importance Of Environmental Accounting in Hotel Companies in TAS/TFRS Context, 1.Uluslararası 4.Ulusal Turizm sempozyumu, Isparta-Türkiye, p. 815-824. Chauhan M., (2005). Concept of Environmental Accounting and Practice in India”, The Chartered Accountant, p.720-726. Çetin M. (2006). Teori Ve Uygulamada Bölgesel Sürdürülebilir Kalkınma, Cumhuriyet Üniversitesi, İktisadi ve İdari Bilimler Dergisi, Cilt 7, Sayı 1, p.1-20. EPA: An Introduction To Environmental Accounting as a Business Mangement Tool: Key Concepts And Terms, Washington, (1995). Gray R. & Bebbington J. & Walters D. (1993). Accounting For The Environment, Founded by the Chartered Association Of Certified Accountants, England. International Federation of Accountants (IFAC) (2005). Environmental Management Accounting.Available: http://www.ifac.org/news/lastestreleases.tmpl?nid=1124902574170148 (20 April 2012). Lazol İ.&Muğal E. &Yücel Y. (2008). Sürdürülebilir Bir Çevre İçin Çevre Muhasebesi Ve Kobi'lere Yönelik Bir Araştırma, Muhasebe ve Finansman Dergisi, Sayı: 38, s. 56-69. Negash M., IFRS and Environmental Accounting, (December 1, 2009) 88 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Available http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1516837 Rondinelli, D.A.& Bery, M. A. (2000). Environmental Citienship in Multi-national Corporations: Soial Responsibility and Sustainable Development, European Management Journal, Vol.18, No:1, p:70-84. Schaltegger S. (1997). Information Costs, Quality of Information and Stakeholder Involvement-The Necessity of International Standards of Ecological Accounting, EcoManagement and Auditing, Vol. 4 (3), 87-97. Tüsiad, (2005). Şirketlerin Yeni Yönetim Aracı: Çevresel Muhasebe, Yayın No. -T/200506/404, Haziran. United Nations Division for Sustainable Development, (2001). Environmental Management Accounting, Procedures and Principles. Yakhou M., Dorweiler V.P. (2004). Environmental Accounting: An Essential Component of Business Strategy, Business Strategy and the Environment, Volume 13, p.65-77. Yıldıztekin, İ. (2009). Sürdürülebilir Kalkınmada Çevre Muhasebesinin Etkileri, Atatürk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, Sayı:13 (1): 367-390. The Banks And Sustainable Development Violeta Madzova University Goce Delcev, Faculty of economics-Stip , Republic of Macedonia, violeta.madzova@ugd.edu.mk Abstract This paper focuses on the role of the banks in supporting sustainable development. Its objective is to examine recent trends in banking and sustainable development, as well as to assess the implementation and application of the sustainable development policies adopted by the banks in the banking sector in Republic of Macedonia. For that purpose it is made a comprehensive analysis on the trends of “sustainable finance”, as well as research on the practices in the Macedonian banking sector in supporting sustainable society. Namely, at the beginning of the 21st century, the banks in the industrial world have become complex financial organizations that offer a wide variety of services to international markets and control billions of dollars in cash and assets. Supported by the latest technology, banks are working to identify new business niches, to develop customized services, to implement 89 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1282 Title A name given to the resource The Importance of Environmental Accounting in the Context of Sustainable Development and Within IFRS Evaluation Author Author Hasan , Şenol Abstract A summary of the resource. Nowadays, companies cause a lot of environmental problems because of profit maximization, the endless needs, rapidly advancing technological developments, unconscious consumption of natural resources, as they execute their operations. At first glance, these efforts in order to remove environmental pollution means additional cost to companies in the short term nevertheless they can have a chance of cost minimization in medium and long term and even additional income in this process. To meet the needs of business management and related people about the enviroment, enviromental accounting has started up. The study of TAS/TFRS accounting in the context of the enterprises is focused on enviromental accounting and its importance, reflecting the financial progress on enviromental sensitivity reports and sharing those info with the community. There is no relevant TAS/TFRS on the accounting for and the reporting of environmental costs within the existing set of TAS/TFRS. Because, the accounting principles set out in the existing set of TAS/TFRS are already adequate to deal with the accounting for and the reporting of environmental costs. Also, in our study various suggestions were made for he healthy functioning of enviromental accounting. Keywords: Turkish Accounting Standards, Turkish Financial Reporting Standards, Environmental Accounting, Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance https://omeka.ibu.edu.ba/files/original/7a2bb56f75283b44dfe86dc885323541.pdf 43dd011a50b975638e2b405e2fa4b69e PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Bantilan, M.C.S, Bantilan F. T. and de Castro M. M., (1992). “Fuzzy Subset Theory in the Measurement of Poverty”, Journal of Philippine Development, Num: 34, Vol. XIX, pp 97127. Cerioli A., Zani S. (1990). “A Fuzzy Approach to the Measurement of Poverty”, Income and Wealth Distribution, Inequality and Poverty, in Dangum, C. and Zenga, M. (eds). Cheli, B., Lemmi, A. (1995). A Totally Fuzzy and Relative Approach to the Multi Dimensional analysis of Poverty, Economic Notes, vol 24, pp115- 134. Miceli, D., (1998). Measuring Poverty Using Fuzzy Sets, Discussion Paper no.38, NATSEM, University of Canberra. The State Institute of Statistic of The Republic of Turkey, Households Survey 2003. World Bank, “Development Reports”, Attacking poverty, World Bank 2000/2001 Washington, D.C. Zadeh A, Fuzzy sets, Information and Control 8 (1965) 338-353 The Importance Of Erp (Enterprise Resource Planning) Software And Choosing Criterias For Business Hakan Çetin1 ,Hakan Akar2 1Akdeniz Universiy, Faculty of Education Department of ComputerEducationandInstructionalTechnology 2Akdeniz University, Department of Informatics E-mails: hakanc@akdeniz.edu.tr, hakanakar@akdeniz.edu.tr Abstract With the increase of competition and being used information technologies by business’ effectively, the software that organize flow of information and develop the interdivisional integration have increased. While this study is emphasizing the importance of ERP (Enterprise Resource Planning) software for business, reveals choosing criteria. In this study, firstly, for business ERP system’s basic features, modules and profits are discussed. In next parts, key considerations when choosing ERP software are emphasized and lastly discussed how to ERP system put out an approach for business. In consequence of the discussion, it is seen that Enterprise Resource Planning software for companies' internal control activities and interdepartmental integration is successful and necessary. Keywords: ERP, Information Technologies, Planning 123 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 1.INTRODUCTION The advances in informatics technologies have diminished the world, thus the trade activities merchandised interstate conveniently can be merchandised all around the world. These advances have changed business’ commerce routines and approaches. The increasing competition has led firms seek reliable solutions and ERP software administering the process which passes from provision to manufacturing via management information systems are developed [Klaus et al., 2000]. In this process brought up by competition, business should use their sources effectively and efficiently to be afloat, to stand out among its rivals and come into prominence (Çelik, 2011). Effective and efficient use of sources depends on administering the process good and taking right strategic decisions. In this point, informatics technologies create solutions to business and some data that help the administrators take right decisions. Being business big or small, producing service or goods are not obstacle to their information technologies usage. In the future, when information technologies are inadequate, business will develop new concepts and technologies and they will have to share their concepts and technologies with other business (İlter, 2007:1-20). The reason for this, in process of produces more and more innovations and strategic specialities will be required and these innovation and specialities will be presented to business usages. Nowadays, it is seen that business that have classic business administering insight have been disappeared and they leave their places new business that use information technologies and systems the most efficiently (İlter, 2007:1-20). This study presents some information which show the importance,usage areas, advantages and disadvantages of ERP software. 2.WHAT IS ENTERPRISING RESOURCE PLANNING? Information technologies affect business directly in some areas like electronic trade, ERP and information administering (Arıkboğa, Kaya, 2000:127). Enterprise resource planning systems with opportunities in the competitive environment, business will become more advantageous. Being Material requirement planning (MRP) and Manufacturing resource planning (MRPII) systems’ developed versions, ERP system is a planning and communicating system containing all functions of business (Kumar, 2002: 511). Nowadays, the systems called as ERPII help to manage modules such as purchase, accounting and finance, quality control, stock management, production planning, logistic, human resources, customer care (CRM), marketing and provision management from central location (Aydoğan, 2008: 2). In brief, ERP can be introduced as a software package that integrates all ongoing flow of information in a company (Çelik, 2011). ERP softwares are package programs prepared with modular logic. There are a lot of ERP software on the marketing and nearly all of their basic modules are the same. Looking at the overall ERP software modules, it is seen that this modules are gathered under the titles of purchase method, sale and customer care, product design, materials management, production management, accounting and finance, human resources and the basic application modules (Aydoğan, 2008: 113). 124 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Businesses that want to use ERP software, process mapping needs to be acquainted with how things are primarily. ERP software will be removed this way, a road map to follow. Process mapping is located in two different options. The first option is the mapping of the current situation and second option is to use best solution. In ERP software built on mapping the current situation there are built-in performance and software flexibility, the likelihood of various problems (Kul, 2009: 211-212). 3.THE DEVELOPMENT PROCESS OF ERP SYSTEMS In increasing competitive environment business to make themselves advantageously benefit from the opportunities offered by information technologies. In 1960’s business used inventory management that makes manually and control system. In 1970’s MRP systems that assumed as the beginning of ERP systems are developed. The MRP systems were rendered computer aided by Joseph Orlicky and this system provided the necessary support for the determination of the amount of material (TMMOB, 2006). In 1980’s the subject of MRP attracted attentions of software companies and package programmes were started to develop. In the same years with increasing competition in business products and production control began to be insufficient. MRPIIs were developed via incorporated rising values such as logistics, finance, sales and accounting planning in the system (TMMOB, 2006). In 1990’sincreasing information traffic in business featured units’ coordination. Besides, with the distribution resources planning and addition integrated manufacturing to computers, new softwares were needed. The softwares in that all units are integrated with each other and datas collected in single center in business were developed. To this developed package programmes were named Enterprise Resource Planning (ERP). In 2000’s new approaches such as Customer Relationship Management (CRM) and Supply Chain Management (SCM) emerged by this way there were needs for non-business information systems. With the inclusion of this approaches to the system by software companies, the ERP system turned to the ERPII (Bircan, 2009). At the present time, with the acceleration of internet and business’ moving to this environment, some functions such as B2B, B2C, intranet, PAM, LMS, job flow management, Project management are needed. With the combinations of these functions, enterprise information systems began to be called as e- Businnes. 4.STRUCTURAL FEATURES OF ERP SYSTEM ERP software can be produced according to the desired sector or needs. no matter which the industry or field of activity are produced, these softwares’ features are the same basically. Enterprise Resource Planning systems generally have common features (Aydoğan, 2008; BayraktarveEfe, 2006):     125 ERP software have a modular structure. ERP software can be customized to meet the needs of companies and developed. ERP software has hardwired management system that holds both the master data and data for business process. With its single interface and integrated structure, ERP software provides flow of information to all departments within the business. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo    To manage data accurately and consistently, real time data entry is needed. By providing data to be transferred electronically via the Internet and intranets, ERP software is compatible with today’s information technology. Because it supports many corporate functions, it has a highly functional structure. ERP software has a modular structure. These functional modules which are contained in the modular structure can be expressed as principal components such as Strategic Planning and Management, Accounting Management, Financial Management, Production Management, Logistics, Product Development and R & D Management, Sales and Marketing Management, Human Resource Management, Supply Chain Management, EBusiness Applications, Customer Relationship Management. 5. ERP’S BENEFITS AND SELECTION CRITERIA ERP system uses a wide variety of software and hardware components. For ERP software is high cost investment, selection of software is very important to meet the needs of business. Before choosing the software, firstly business should decide if they will use ERP system or not. Situations where it is needed ERP software can be expressed as follows.          If your business suffer from unknown costs, If problems of only specific persons resolve, If your actual financial performance is unknown, If follow up and planning take a lot of time, If processing errors are increasing, If the information requested cannot be accessed easily, takes a week to prepare some reports, If there are several contradictions in the reports prepared. If your business suffer from customer loss and customer complaints are increasing, If existing software restrict the company’s growth,(Onar, 2008). To be successful the ERP that will be installed in business, it is needed to choose the software which creates the most appropriate solutions for the organization structure, technological systems, corporate objectives and strategies to the business. The process is so important that during the software decision even a small mistake made can cause of big amount of financial loss. (http://www.sumo.com.tr/erpsecimkriter.html). Therefore, when choosing an ERP, businesses can follow to this 4-stage:     Identification Research Recognition Analysis and selection of applications. In identification phase, business should identify its priorities and processes properly. Secondly, the solutions that matches described system should be investigated. Candidates’ solution offers appeared in a list that will be obtained from the trail should be analyzed,demos of software should be looked at, references should be reviewed and consequently a score should be given to each studied software according to its suitability for 126 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo the process and goals. In the selection process, if an analytical method is used, some criterias should be based on and the selection should be evaluated according to this criterias. Finally, before the analysis and selection process, the selection criterias should be determined. There are 15 criteria most commonly used around the world on this issue. Thesecriterias may be reduced to 5:      Functionality Technology and Expertise (Know-How) Flexibility and Scalability of Application Cost and Ease of Use Implementation and Ease of Use According to known criterias, during the selection of ERP, the method called as Analytic Hierarchy Process (AHP) is used. In analytic hierarchy process firstly the selection criterias are ordered among each other, and secondly candidate software are ordered among each other. According to this order, the decision makers decide the ERP system that provides optimum benefit (Baltalar, 2008). ERP systems selected for the purpose of business will provide these contributions in general: (TMMOB, 2006; Kul, 2009; Aydoğan, 2008)               It speeds up the flow of information via provide the achievement of the desired format and detailed. Provides inventory optimization. Provides an excellent decision support system that increases the competitiveness. It helps managers make better and faster decisions. Provides in-house performance monitoring and analysis. Provides the tools which are needed to sales forecasting, sales channels and dealer management, market and customer assessment. Provides increase in manufacturing performance and speed of manufacturing process. Provides improvement in preparation of orders and financial information. Provides efficient use of resources, and decrease operating costs by providing management. Thanks to flexible structures, provides an easy and rapid adaptation according to the market conditions and changes in the needs of business processes. Provides development of a common in-house language and increased coordination between units. In order to meet customer needs more quickly, giving the necessary support for the management of customer relationships, provides increase in customer satisfaction. Provide the right investment decisions and improve business processes. Allows customers and suppliers in different regions to share data faster and to integrate information easily. 6. CRITICISM ABOUT ERP Even though some positive opinions are indicated, in literature and practice there are some negative opinions about ERP systems. Actually they are not negative opinions but they are criticisms. The first one of the criticism aimed at business owners and administrators. Business owners or managers concerned with the overall costs of purchasing the software they need, other elements do not receive much more attention (Gör, ve 127 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Güneri,2008). This approach leads to a higher risk to face with. Here are the criticisms made about ERP (Çelik, 2011).         ERP systems cost high expenditure. ERP system’s setup takes long time. These systems have difficulty in adapting to existing and complex softwares. ERP systems are interested in very large-sized companies. Implementation of ERP systems are very expensive and require significant modifications. The company needs restructuring process in order to use modification system. ERP systems increases the number of information technology and personnel costs. Even if ERP systems are installed, additional systems are needed for proper operation. These criticisms are important for the development of the system. Definitely there are some deficiencies in all systems. The important thing is to complete the missing parts. 7. DISCUSSION AND CONCLUSION Development of technology and changing competitive conditions are promoted many middle-and upper- level business to find different solutions. Integrated software systems, beginning with using the computers in manufacturing sector has turned into giant package programmes which is called as ERP at present time. Before the business use these package programmes, they definetely need to spend a good software selection process. When literature review and studies associated with this subject are analysed, it is seen that there is some selection methods the business need to use during the software selection process. Gorener (2011) used VIKOR technic and analytic net process (ANP) method during the ERP software selection in his study. There are two important phase in selection process. First one is to determine the criterias; this phase is performed by usage of some methods such as Analitical Hierarchy, Analitical net process. Second one is process of ordering the criterias according to their order of importance. The rating process is performed by some techniqes such as Vikor, Topsis, Promethee, Electre, Saw techniques. It is seen that among the sort techniques, Topsis and Vikor give optimum result in the study that Chu and the others carried out. The most important process about ERP systems is selecting process, thus Professional support must be taken. Business sometimes ignores this process cause of its costs, but it must be remembered that if the software being inexpedient is selected, the subsequent process will lead to greater financial loss. No matter how they are named, ERP, ERPII or e-Business , a corporate information system should produce solutions not only for business within business process, but also for all employees, suppliers, customers and business partners. In other words, it must manage bothbackoffice and frontoffice resources (Bircan, 2009). This study presents ERP software development process and its beneficial aspects for business. In addition, it contains the important points that business should give attention and the techniques that are used in this process. Benefiting from ERP systems that have an expensive and complex structure depends on carrying out the process of selecting and setupprocess conspiratorially and the attention the business paid. 128 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo REFERANCES AYDOĞAN, E., (2008), “Kurumsal Kaynak AraştırmalarDergisi, Yıl 12, Sayı 2, ss.107-118. Planlaması”, Türkiye Sosyal ARIKBOĞA, D., Kaya, İ., (2000), “Ülkemizde Kurumsal Kaynak Planlaması veMuhasebe Eğitiminden Beklentiler”, XIX. Türkiye Muhasebe Eğitimi Sempozyumu, 18-20 Mayıs, İstanbul Üniversitesi İşletme Fakültesi Bildiriler Kitabı, ss.134-147. BALTALAR, H., (2008), “Analizitik ERP Seçimi”, ERP Akademi BAYRAKTAR, E., EFE,M., (2006), “Kurumsal Kaynak Planlaması(Erp) Ve YazılımSeçim Süreci”, Selçuk Üniversitesi, Sosyal Bilimler Dergisi: 689, Sayı 15, 2006 BİRCAN Emre, (2009), “ERP’nin tarihçesi ve WORKCUBE”, www.cfcube.com, erişim tarihi: 23.04.2012 CHU, M.T.,Shyu, J., Tzeng, G.-H., Khosla, R., (2007), “ComparisonAmong ThreeAnalyticalMethodsFor Knowledge CommunitiesGroupDecision Analysis”. ExpertSystemswith Applications, Vol.33, No.4, 1011-1024. CELİK,M.,(2011), “Kurumsal Kaynak Planlama Sistemlerinin Muhasebe SüreçlerineEtkisine Yönelik İMKB’de Bir Araştırma”, Muhasebe ve Finansman Dergisi. GUPTA, M.,Kohli, A. (2006), “Enterpriseresourceplanningsystemsanditsimplicationsforoperationsfunction”, Technovation, 26. Gör, A, G., Güneri F., (2008), “ERP Yazılım Seçiminde ANP Tekniğinin Kullanılması”, 2. Ulusal Sistem Mühendisliği Kongresi Bildiriler Kitabı, 296-300. Heizeger, Jay - Render, Edition,PearsonPrenticeHall Bary (2008), “Operations Management”, Ninth İLTER, H.,Bilgi,K., (2007),Sistemleri Perspektifinden KurumsalKaynak Planlaması: Etkiler Ve Degerler, İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Yıl:6 Sayı:11 Bahar 2007/2s.1-20) Klaus, K.,Rosemann, M. ve Gable, G. G., (2000), “What is ERP?, Information SystemsFrontiers” 2:2, 141-162 Kul, H (2009), “İşletmeler İçin Bilişim Sistemleri Temelleri ve Uygulamaları”, papatya yayıncılık, İstanbul. OnarÖ.Mustafa, (2008), “Erp Yolculuğuna Çıkacaklara Öneriler”, Bilişim zirvesi. V. Kumar, ve diğerleri, (2002), “Enterprise Resource Planning SystemsAdoptionProcess: A Survey Of CanadianOrganizations” International Journal of ProductionReserch, Vol 40, No.3, s511. 129 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1161 Title A name given to the resource The Importance Of Erp (Enterprise Resource Planning) Software And Choosing Criterias For Business Author Author Hakan , Çetin Abstract A summary of the resource. With the increase of competition and being used information technologies by business’ effectively, the software that organize flow of information and develop the interdivisional integration have increased. While this study is emphasizing the importance of ERP (Enterprise Resource Planning) software for business, reveals choosing criteria. In this study, firstly, for business ERP system’s basic features, modules and profits are discussed. In next parts, key considerations when choosing ERP software are emphasized and lastly discussed how to ERP system put out an approach for business. In consequence of the discussion, it is seen that Enterprise Resource Planning software for companies' internal control activities and interdepartmental integration is successful and necessary. Keywords: ERP, Information Technologies, Planning Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/1ae997351e1efc091fc2426c69195b9c.pdf 9536fab59474629ed09ce657d39a3170 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Importance of Export Market Diversification Strategy on the Overcoming Economic Crises: The Case of Turkey Mustafa Göktürk Mustafa Kemal University, Hatay, Turkey mgokturk@mku.edu.tr Tunay Bostan Mustafa Kemal University, Hatay, Turkey tbostan@mku.edu.tr Cemil Serhat Akın Mustafa Kemal University, Hatay, Turkey csakin@mku.edu.tr Today, importance of export is increasing at providing and sustaining growth in developing countries. Because of their macro-economic instability and fragility developing countries face to crisis and affected by global economic crisis more than developed countries. At the end of 2007 in USA, problems in returning long-term housing loans created mortgage crisis in financial markets. Crisis spread to all of the markets and return to economic crisis. Leaping of crisis to developed countries which are economically locomotive of global economy caused crisis spreading and deeping world-wide. The average growth rate of global economy was 5% before the crisis. This rate declined to 3% after crisis (IMF). The crisis affected developing countries by exports. The economic crisis deeply existing in EU countries which are traditionally Turkey Republic’s markets decreasing the share of Turkey to EU exports in the total amount of Turkey exports. The share of Turkey-EU exports was 55% of Turkey’s total export before the global crisis from 1997 to 2008. After the crisis this figure declined 23% in 2009 when the crisis effect was deepest (DTM). Expectation of the effects of the economic crisis will continue, especially in the EU countries resulted Turkey implementing market diversification strategy in foreign trade. In accordance with the strategy; Turkey performed a group of activities and invested (liaison offices, trade shows, incentives) to rise export focused group of countries especially North Africa and the Near and Middle East country groups. 213 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo This paper extends to Turkey’s total export amount to different country groups and rates from 1997 to 2008 accepted as the pre-crisis and from 2010 to 2012 post-crisis period. According to this research the share of Turkey-EU export decreased 11% and became 44%. After implementing market diversification strategy Turkey-MENA export rate increased 10% and became from 13% to 23% (TUİK). We found that the Turkey’s market diversification strategies succeed and Turkey’s export volume increased. Because of reason Turkey is the one of the countries least affected by global economic crisis and recent global economic uncertainty and recovering the economy fast. Economy of Turkey is the fastest growing economy in Europe. The average growing rate of Turkish Economy is 5,4% from 2002 to 2011. Turkey's economy expanded 8.5% in 2011 (TUİK). The aim of this study is to show negative effects of economic crisis on growth of economy by the channel of export and to test alternative export policies (market diversification strategy) on recovering crisis. Keywords: Economic Crises, Export, Economic Growth, Market Turkey Economy, Diversification. 214 � https://omeka.ibu.edu.ba/files/original/b63f38f7fbdf88b531327232b29befd3.docx ee26d6d9783aa1136fb91b806034d0c2 https://omeka.ibu.edu.ba/files/original/c21f0fa4230ea357c5e28dfa1e3bcee3.pdf d9b5e6918808e3211a3fbde18a2ecceb PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo The Importance of Export Market Diversification Strategy on the Overcoming Economic Crises: The Case of Turkey Mustafa Göktürk Mustafa Kemal University, Hatay, Turkey mgokturk@mku.edu.tr Tunay Bostan Mustafa Kemal University, Hatay, Turkey tbostan@mku.edu.tr Cemil Serhat Akın Mustafa Kemal University, Hatay, Turkey csakin@mku.edu.tr Abstract Today, importance of export is increasing at providing and sustaining growth in developing countries. Because of their macro-economic instability and fragility developing countries face to crisis and affected by global economic crisis more than developed countries. At the end of 2007 in USA, problems in returning long-term housing loans created mortgage crisis in financial markets. Crisis spread to all of the markets and return to economic crisis. Leaping of crisis to developed countries which are economically locomotive of global economy caused crisis spreading and deeding world-wide. The average growth rate of global economy was 5% before the crisis. This rate declined to 3% after crisis (IMF). The crisis affected developing countries by exports. The economic crisis deeply existing in EU countries which are traditionally Turkey Republic’s markets decreasing the share of Turkey to EU exports in the total amount of Turkey exports. The share of Turkey-EU exports was 55% of Turkey’s total export before the global crisis from 1997 to 2008. After the crisis this figure declined 23% in 2009 when the crisis effect was deepest (DTM). Expectation of the effects of the economic crisis will continue, especially in the EU countries resulted Turkey implementing market diversification strategy in foreign trade. In accordance with the strategy; Turkey performed a group of activities and invested (liaison offices, trade shows, incentives) to rise export focused group of countries especially North Africa and the Near and Middle East country groups. This paper extends to Turkey’s total export amount to different country groups and rates from 1997 to 2008 accepted as the pre-crisis and from 2010 to 2012 post-crisis period. According to this research the share of Turkey-EU export decreased 11% and became 44%. After implementing market diversification strategy TurkeyMENA export rate increased 10% and became from 13% to 23% (TUİK). We found that the Turkey’s market diversification strategies succeed and Turkey’s export volume increased. Because of reason Turkey is the one of the countries least affected by global economic crisis and recent global economic uncertainty and recovering the economy fast. Economy of Turkey is the fastest growing economy in Europe. The average growing rate of Turkish Economy is 5,4% from 2002 to 2011. Turkey's economy expanded 8.5% in 2011 (TUİK). 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo The aim of this study is to show negative effects of economic crisis on growth of economy by the channel of export and to test alternative export policies (market diversification strategy) on recovering crisis. Keywords: economic crises; export; economic growth; market diversification; Turkey economy Introduction For developing countries which creating income with trade of commodities, diversifying exports has long been a policy objective. Today importance of export is increasing at providing and sustaining growth in developing countries. Because of their macro-economic instability and fragility face to crisis and affected by global economic crisis more than developed countries. At the end of 2007 in USA, problems in returning long-term housing loans created mortgage crisis in financial markets. Crisis spread to all of the markets and return to economic crisis. Leaping of crisis to developed countries which are economically locomotive of global economy caused crisis spreading and deepening world-wide. The outlook of world economy and international trade are unstable. The trade flows are declining and trade shocks are occurring. In this economic outlook for creating income international trade is essential. 2008-2009 global crises and the aftermath of the crisis European debt crisis and the Arab Spring developments will how affect Turkey's economy through the medium and long term is an important research area. Focusing on the new markets and diversification resulted increased the Turkey’s export to Middle East and North Africa. This situation compensate for depression of export to EU countries. After we put the problem in this way it is necessary that determinate the current situation by analyzing Turkish export structure with market divisions and goods. In this study firstly we review export diversification, trade and economic growth notions. Secondly we aim that to show geographical and sectorial structure of Turkey’s export for 2000-2012 periods. We analyze that importance of Turkey’s target market and sectorial development of export made to target markets by share of geographical divisions and goods on the total export. Lastly we analyze Turkey’s export performance with diversification of geographical divisions and goods. Export Diversification, International Trade, and Economic Growth Export growth, export diversification can be positively associated with economic growth. Diversity in exports can reduce income volatility for countries with large populations living in poverty and reduce vulnerability to sharp declines in the terms-of trade. Expanding international trade has been an important avenue for growth in many developing countries. And export diversification is seen by many as an important channel through which trade fuels economic growth: by facilitating improvements in productivity, by capturing economies of scale, and by curbing volatility (Newfarmer, et al, 2009). Export diversification, growth, and volatility and its impact on economic growth is as old as economic development literature. But the literature does not come up with a consistent 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo definition of export diversification. A general definition of diversification of exports is chancing the country's current product mix or changing in the number of export markets. There are three dimensions of diversification: breaking into new geoFigure markets, improving the quality of existing exports, increasing services exports. A more useful definition is originated from the way diversification is measured. It is preferred to use the concentration indices to measure the extent to which country’s export is diversified. The concentration indices measure whether majority of country’s export earnings comes from small range of export products (indication of export concentration) or the source of export earnings are more evenly spread across a given range of export goods (indication of export diversification). Export can grow at the intensive (the growth in the value of existing products) and extensive margin (the increase in the number of export lines). Accordingly, export diversification can be captured along the margins: a more evenly spread of the export basket is an indication of diversification at the intensive margin, while the greater number of export lines indicate diversification at the extensive margin (Cadot et al., 2009). The biggest differentiation is made between horizontal and vertical diversification. Horizontal diversification entails alterations or balance of the export mix – more of an existing commodity is being produced to meet increased export demand for this commodity. Vertical diversification involves contriving further use for existing products by means of adding value or introducing new products for which the country had no prior export experience. Both dimensions are reflected in above index. In addition, export diversification can take place by marketing products to new destinations or increasing the export volume in previously under-served markets. All of forms and dimensions are associated with economic gains. While definition of intensive margin is similar in majority of studies, different authors define extensive margin differently. In our definition, extensive margin is, as in Melitz (2003), new product margin. Besides, the literature argue that diversification of exports on the extensive margin could be achieved along geographical dimension (when a product, either the existing or a new one, is exported to new markets) and along quality dimension (by improving the quality of existing products). Such measures of geographical diversification at the extensive margin can be found in Breton and Newfarmer (2007), Amurgo-Pacheco and Pierola (2007) and some others. It is not uncommon in empirical studies that export diversification is identified as extensive margin. Diversification on the intensive margin of export growth is not investigated much in the literature. In that sense, our focus on factors that affects diversification at the intensive margin is the novelty in this literature. In order to assess the extent of export diversification, diversification-related empirical literature usually takes concentration measures from the literature on industrial organization and inequality measures from the income inequality literature. The concentration and inequality indices (Herfindhal, Gini and Theil indices in particular) seem to be the most widely used measures of export diversification. Concentration indices measure changes in a country’s export structure, defined at any level of aggregation. However, the measure is better if the data are at a greater level of disaggregation (Cadot et al., 2009). Indices are cumulative or summary measures of concentration as they explain 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo the entire size distribution of exports and allow the value of the index to be influenced by changes in every part of the distribution Export diversification aims at moving away from a limited basket of exports in order to mitigate economic and political risks of dependence upon a few primary commodity exports. When export is concentrated in a few primary commodities, there can be serious economic and political risks. Economic risks include: in the short term, volatility and instability in foreign exchange earning which have adverse macroeconomic effects (on growth, employment, investment planning, import and export capacity, foreign exchange cash flow, inflation, capital flight and undersupply of investments by risk averse investors, debt repayment); and in the long term, secular and unpredictable declining terms of trade trends which exacerbate short run effects. Political risks include worsened governance and risk of civil war in fragile states; as recent research (Collier, 2002) shows that primary commodity dependence is associated with various dimensions of poor governance; and the risk of conflict is strongly related to the level and growth of income, as well as its structure as reflected in the dependence upon a few primary commodity exports. Heavy dependence on a small number of primary commodity products exposes a country to the negative effects of unfavorable characteristics of world demand and negative supply side features of these primary products. On the demand side, the low income elasticity of world demand of primary commodities can lead to falling export revenues which can be exacerbated by historically downward trends in primary commodities relative to manufactures. Although, according to Cashin and Mc. Dermott (2002), real commodity prices have declined by about 1% per year over the last 140 years, volatility and persistence of commodity price shocks can have more dramatic consequences than the long term downward trend of commodity prices. On the supply side, the combined effect of lower skills and technology content of commodity production and its negligible backward and forward linkages with the rest of the economy usually lead to negative growth spillovers (Samen, 2010). A diversified portfolio could help minimize volatility in export earnings and boost overall growth by replacing primary commodities with positive price trends products and adding value through additional processing or marketing. As traditional exports are particularly vulnerable to exogenous shocks and face limited demand due to their low income elasticity and declining terms of trade, diversifying away from traditional exports is expected to raise growth rates and lower their variability. Hence, export diversification can also aim at improving backward and forward linkages to domestic inputs and services, and expanding opportunities for export in existing or new markets. Reducing dependence upon one or a limited number of geoFigureal destinations or origins can also be a major objective for export diversification (Samen, 2010). As an example, Değer (2010) found a statistically significant relationship between the of Turkey's economy data for the period 1980-2006 with long-term economic growth and export diversification. He demonstrated that manufactured goods weighted export structure and export goods diversification both have a positive effects on Turkey’s economic growth. Similarly, Aldan et al (2012) point out that Turkey has diversified her exports by sector as well as by markets in 2003-2011 period. They gave a detailed analysis of export diversification by sectors within markets and by markets for different sectors. The results suggest that market diversification has been increased in main export sectors such as machinery and transportation, iron and steel, wearing apparels and textiles. Similarly, 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo product diversification has been increased in main export markets such as EU, Middle East and North America. These findings indicate that Turkish exports have gained strength against external shocks observed for particular sectors and/or markets. Structural Change in Exports and Export Diversification: A Look at TURKEY over the Period 2003–2011 Turkey's ties with the global economy have increased rapidly after 2001economic crisis. The successful implementation of stabilization and structural reform program and the positive situation in the world economy contributed to the emergence of this table. Turkey’s import volume annual average increase rate come from 11 percent in the 19912000 periods to 31 percent in the 2002-2008 periods. After 2001 not only the volume of imports the volume of export has grown rapidly. Export volume in the period 2002-2007 average annual growth rate increased to 30 percent from 8 percent in the 1991-2000 periods. (Acar, 2009) According to Figure 1; In 2001, the Gross Domestic Product (GDP) decreased by 5.7% compared to the previous period, Turkey's economy, the first quarter of 2002 to the third quarter of 2008, the average term of 6.5% and a growth process which lasted a full 27 quarters into a row. With the 2001 crisis in the first place companies have focused to foreign markets as a result of the contraction in domestic demand and the depreciation of the Turkish Liras. Between from 2001 crisis to the 2008 crisis (2002 - 2007 period and the first two quarters of 2008), the importance of foreign trade in economy increase with the worl markets demand increase and increasing competition in the domestic market with the disinflation process (Aysan/Hacıhasanoğlu 2007; Aydın et. al., 2007; Yükseler/Türkan, 2008). Figure 1: Average Annual Real GDP Growth (%) 2002-2011 Source: IMF World Economic Outlook April 2012, Turkish Statistical Institute (TurkStat) Together with stable economic growth, Turkey has also reined in its public finances; the EU-defined general government nominal debt stock fell to 39.4 percent from 74 percent in a period of nine years between 2002 and 2011. Hence, Turkey has been meeting the “60 percent EU Maastricht criteria” for public debt stock since 2004. Similarly, during 20025 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo 2011, the budget deficit decreased from more than 10 percent to less than 3 percent, which is one of the EU Maastricht criteria for the budget balance. (Turkey Economy Ministry, 2013) As the GDP levels more than tripled to USD 772 billion in 2011, up from USD 231 billion in 2002, GDP per capita soared to USD 10,444, up from USD 3,500 in the given period. The visible improvements in the Turkish economy have also boosted foreign trade, while exports reached USD 135 billion by the end of 2011, up from USD 36 billion in 2002. Similarly, tourism revenues, which were around USD 8.5 billion in 2002, exceeded USD 23 billion in 2011 (Turkey Economy Ministry, 2013). Significant improvements in such a short period of time have registered Turkey on the world economic scale as an exceptional emerging economy, the 16th largest economy in the world and the 5th largest economy when compared with the EU countries, according to GDP figures (at PPP) in 2011. While many economies have been unable to recover from the recent global financial recession, the Turkish economy expanded by 9.2 percent in 2010, and 8.5 percent in 2011, thus standing out as the fastest growing economy in Europe, and one of the fastest growing economies in the world (Figure 2). The global financial crisis of 2008, has lead Turkey's foreign trade partners to economic depression. As a general fact through foreign trade channel global crisis can be penetrate in Turkey. The initial effects of the global financial crisis, which is Turkey's most important trading partner in the EU countries has rapidly, become visible. Growth rates of Turkey's most important trading partners after 2008 were well below the growth rates experienced between 2002 and 2007 (Figure 2). Figure 2: GDP Growth (%) 2005-2014 Source: Eurostat Note: Unit: Percentage change on previous period (PCH_PRE) Indicator: Gross Domestic product at market prices We see that in the period of 2001-2012 there is rapid increase in the total export amounts of Turkey. The break of this time series is in 2009. From 2001 to 2008 turkey total export raised 4,2 times. The highest growth rate (33,1) was in 2004. After 2008 there was a global 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo crisis and that cause decrease in foreign trade flows. In 2009 total export growth change rate decrease from 23,1 to minus 22 percent. From 2010 Turkey implied export market diversification. And Turkey recovered the total export, 2012 figure was 152 536 653 000 (US Dollars) (Figure 3; Figure 4) Figure 3: Turkey’s Total Export Source: TUİK, 2013 Figure 4: Turkey’s Total Export Growth Source: TUİK, 2013 EU has the biggest share on the Turkey’s Export. After the 2008 global crisis the share of EU on Turkey’s export decrease but EU still the important export partner of Turkey. 2008 global crisis effected all partners of Turkey especially export to North America decreased 50% percent after crisis (TUİK, 2013). After the Turkey changed export policy, the share of exports to Middle Eastern countries began to increase again, the effects of the global financial crisis started to be felt in 2008 has reached remarkable proportions. North Africa and Mena country groups has relatively low share on the Turkey’s Export but after crises they became more important for Turkey (Figure 6, Figure 7, and Figure 8). Turkey's export volume growth rate is analyzed on a regional basis wesee that cause of the decrease in export growth is Economic recession in the EU countries. The global financial crisis hit the EU countries with the October 2008-January 2009 period, the growth rate of 7 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Turkey’s exports to the EU countries, began to decline rapidly. Deterioration in export performance is not limited with EU countries. In addition, Turkey's exports to other European countries caught in the growth rate of 37 per cent pre-crisis, has declined by -1 percent after crisis Turkey can increase export to only North African countries (Table 1; Figure 6) Turkey exports to EU countries mainly textile, clothes, machinery and transporting vehicles. In Turkey's exports to this region in 2003 the share of machinery and transporting vehicles has equal shares. After 2008 this equilibrium seems to have changed decisively in favor of machinery and transporting vehicles. New countries such as China and India got more importance in textile and clothing sector, Turkey export rates in these sectors decreasing parallel. The important point is the most serious deterioration is in the automotive and communication equipment sectors which require specialty in manufacturing of consumer goods. Turkey has an important role in these sectors global value chains. İt is possible that contraction in the production of these sectors value chain would be serious repercussions for all global value chain. Based on these data Turkey’s export getting more intense in North Africa and Europen countries(nonmembers of EU). We can neglect the raise of export to Europen countries(nonmembers of EU) in 2008-2009 periods. After the rapid change in the year 2004, there nothing change first 10 sector shares but first 5 sector shares decrease little. When we study both of first 5 sector shares and first 10 sector shares, export intensive in North America market is regressing seriously (Figure 5). Figure 5: Sectorial and geographical distribution of Turkey's Export Source: (Aldan et.al. 2012); (TUİK) 8 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Figure 6: Turkey’s Total Export to EU (27) Countries Source: (TUİK, 2013) Figure 7: Turkey’s Total Export to Africa Source: (TUİK, 2013) Figure 8: Turkey’s Total Export to Middle and Near East Source: (TUİK, 2013) 9 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 1: Turkey’s Total Export by Country Groups 2000 TOTAL EXPORT A- EU COUNTRİES (27) B- FREE TRADE ZONES C- OTHER COUNTRİES 1- Europe Countries (Non EU members) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 27.775 31.334 36.059 47.253 63.167 73.476 85.535 107.272 132.027 102.143 113.883 134.907 152.561 15.664 17.546 20.415 27.394 36.581 41.365 47.935 60.399 63.390 46.977 52.685 62.347 59.241 2.967 2.943 3.008 1.957 2.084 2.545 2.295 11.216 12.854 14.206 17.931 24.022 29.137 34.633 43.930 65.622 53.208 59.114 70.015 91.025 1.855 2.094 2.607 3.362 4.507 5.855 7.962 10.843 15.678 11.359 11.373 12.976 14.373 2- Africa 1.373 1.521 1.697 2.131 2.968 3.631 4.566 5.976 9.063 10.180 9.283 10.334 13.361 North Africa Other Afrika Countries 1.087 1.150 1.267 1.577 2.203 2.544 3.097 4.030 5.850 7.445 7.025 6.701 9.448 285 371 430 554 765 1.087 1.469 1.947 3.212 2.735 2.258 3.633 3.913 3- AMERİCA 3.596 3.685 3.914 4.269 5.733 5.960 6.328 5.603 6.532 4.836 6.078 7.926 9.636 South Amerika Middle America 3.309 3.297 3.596 3.973 5.207 5.276 5.439 4.541 4.802 3.561 4.242 5.459 6.673 167 201 197 166 334 411 548 549 829 597 598 626 770 South America 120 186 121 131 193 274 341 514 901 678 1.237 1.840 2.193 4- ASİA Middle ve Near East Other Asian Countries 5AVUSTRALİA and NEW ZELAND 6- Other Countries 3.871 4.592 5.230 7.813 10.465 13.213 15.257 20.309 32.505 25.912 31.876 38.134 53.059 2.573 3.261 3.440 5.465 7.921 10.184 11.316 15.081 25.430 19.208 23.295 27.935 42.477 1.298 1.331 1.790 2.348 2.544 3.029 3.942 5.227 7.074 6.704 8.581 10.199 10.582 135 98 122 158 264 271 327 343 435 360 403 481 490 385 864 637 197 84 208 192 857 1.410 561 102 164 105 895 934 1.438 1.928 2.564 2.973 Source: TUİK 2013 Conclusion In this study firstly we review export diversification, trade and economic growth notions. Secondly we aim that to show geographical and sectorial structure of Turkey’s export for 2000-2012 periods. We analyze that importance of Turkey’s target market and sectorial development of export made to target markets by share of geographical divisions and goods on the total export. Lastly we analyze Turkey’s export performance with diversification of geographical divisions and goods. First, we found that export to EU countries which are Turkey’s traditional export markets, decreasing due to lack of demand. Turkey focused on historically and geographically near countries North Africa and MENA countries. Turkey total export is growing after this diversification policy. But we use average and total amounts of relatively short period (2000-2012) our data supports the main idea of “diversification of export markets policy helps to cope with economic crises”. 10 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo References Acar, O. (2009).Türkiye’de Dış Ticaret ve Dış Ticaretin Finansmanı Durum Değerlendirmesi, TEPAV Raporu, Aldan A., Aydın M.F., Çulha O.Y., Sunel E., (2012). İhracatta Bölgesel ve Sektörel Çeşitlenme, TC Merkez Bankası Sayı: 2012-18 Amurgo-Pacheco, A. and Pierola, M.D. (2007). Patterns of Export Diversification in Developing Countries: Intensive and Extensive Margins. Economics Section, The Graduate Aydın F., Saygılı H., Saygılı M., (2007). Empirical Analysis of Structural Change in Turkish Exports, Research and Monetary Policy Department Working Paper (No: 07/08) (Ankara: The Central Bank of the Republic of Turkey). Aysan A.F., Hacıhasanoğlu Y.S., (2007). Investigation on the determinants of Turkish Export-Boom in 2000s, The Journal of International Trade and Diplomacy, 1/2: 159- 202. Brenton, P., and Newfarmer, R. (2007). Watching More than the Discovery Channel: Export Cycles and Diversification in Development Unpublished. World Bank, Washington, D.C. Cadot, O., Carrère , C., Strauss-Kahn V. (2009). Export Diversification: What's behind the Hump?. Review of Economics Retrieved April 25 2013, from http://hal.archivesouvertes.fr/docs/00/55/69/99/PDF/2007.24.pdf Collier, P. (2002). Primary Commodity Dependence and Africa’s Future,World Bank Retrieved April 25 2013, from http://siteresources.worldbank.org/D EC/Resources/84797-1251813753820/6415739-1251814045642/Collierfull.pdfInstitute of International Studies. HEI Working Papers 20-2007. Melitz, M. J. (2003). The Impact of Trade on Intra-Industry Reallocations and Developing Countries: Intensive and Extensive Margins. Economics Section, The Graduate Export Cycles and Diversification in Development. Unpublished. World Bank, Washington, D.C. Newfarmer Richard , Shaw William, Walkenhorst Peter. (2009).”Breaking into new markets : emerging lessons for export diversification “World Bank, Washington, D.C. SAMEN S., (2010). Export development, diversification, and competitiveness: how some developing countries got it right. Unpublished. World Bank. (P;3-4) Turkey Economy Ministry Retrieved April 25, (2013).Fromhttp://www.invest.gov.tr/enus/turkey/factsandfigures/pages/economy.aspx Yükseler Z., Türkan E., (2008). Türkiye’nin Üretim ve Dış Ticaret Yapısında Dönüşüm (İstanbul:Türk Sanayicileri ve İşadamları Derneği (TÜSİAD) Yayını). 11 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1658 Title A name given to the resource The Importance of Export Market Diversification Strategy on the Overcoming Economic Crises: The Case of Turkey Author Author GOKTURK, Mustafa BOSTAN, Tunay SERHAT AKIN, Cemil Abstract A summary of the resource. Today, importance of export is increasing at providing and sustaining growth in developing countries. Because of their macro-economic instability and fragility developing countries face to crisis and affected by global economic crisis more than developed countries. At the end of 2007 in USA, problems in returning long-term housing loans created mortgage crisis in financial markets. Crisis spread to all of the markets and return to economic crisis. Leaping of crisis to developed countries which are economically locomotive of global economy caused crisis spreading and deeping world-wide. The average growth rate of global economy was 5% before the crisis. This rate declined to 3% after crisis (IMF). The crisis affected developing countries by exports. The economic crisis deeply existing in EU countries which are traditionally Turkey Republic’s markets decreasing the share of Turkey to EU exports in the total amount of Turkey exports. The share of Turkey-EU exports was 55% of Turkey’s total export before the global crisis from 1997 to 2008. After the crisis this figure declined 23% in 2009 when the crisis effect was deepest (DTM). Expectation of the effects of the economic crisis will continue, especially in the EU countries resulted Turkey implementing market diversification strategy in foreign trade. In accordance with the strategy; Turkey performed a group of activities and invested (liaison offices, trade shows, incentives) to rise export focused group of countries especially North Africa and the Near and Middle East country groups. This paper extends to Turkey’s total export amount to different country groups and rates from 1997 to 2008 accepted as the pre-crisis and from 2010 to 2012 post-crisis period. According to this research the share of Turkey-EU export decreased 11% and became 44%. After implementing market diversification strategy Turkey-MENA export rate increased 10% and became from 13% to 23% (TUİK). We found that the Turkey’s market diversification strategies succeed and Turkey’s export volume increased. Because of reason Turkey is the one of the countries least affected by global economic crisis and recent global economic uncertainty and recovering the economy fast. Economy of Turkey is the fastest growing economy in Europe. The average growing rate of Turkish Economy is 5,4% from 2002 to 2011. Turkey's economy expanded 8.5% in 2011 (TUİK). The aim of this study is to show negative effects of economic crisis on growth of economy by the channel of export and to test alternative export policies (market diversification strategy) on recovering crisis. Keywords: Economic Crises, Export, Economic Growth, Market Turkey Economy, Diversification. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3477 Title A name given to the resource THE IMPORTANCE OF FREQUENT USAGE OF VARIOUS MOTIVATIONAL STRATEGIES IN SECOND LANGUAGE ACQUISITION Author Author Hadžimehmedagić, Mahira Akbarov, Azamat Abstract A summary of the resource. Why do the students of second language acquire it with different level of achievement? Which factors influence better acquisition of L2? What is the role of motivation and motivational strategies in SLA? These questions always bother the ones who are involved in teaching process, and second language acquisition. These questions can be related to the term of motivation. Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviours, or collective set of ideas and forces that influence people to think in a certain way. So, motivation can, really be considered as a very important factor that has a great impact in students SLA, especially the motivation and the strategies employed by the teachers in the classroom. This paper is concerned about the various motivational strategies that teachers use to motivate their students while acquire the second language. In fact, how often do they use various motivational strategies in their teaching process in order to make the language acquisition and comprehension easier. The research study was conducted to find out how frequently and in which percentage are motivational strategies used by the teachers in the classroom, and which type or the group of the same was used the most. The participants of the research study were the teachers of International Primary Schools of Bosnia and Herzegovina, where English language is taught as a second language. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3345 Title A name given to the resource THE IMPORTANCE OF GESTURES IN ANALYSING ESL CLASSROOM DISCOURSE Author Author A. Attelisi, Abdulhameed Abstract A summary of the resource. When people speak, they usually accompany their speech with movements of hands and arms. It is believed that some of these hand movements (gesture) exhibit a meaning which is related to the verbal message. Although the nature of the relationship between gesture and speech is still not clear, we all acknowledge that teachers in general and ESL teachers in specific rely heavily on gesture to make the learning process more effective. Therefore considering the essence of gestures in classroom interaction completes the picture of classroom discourse. The aim of this paper is to provide an example of the relationship between speech and gesture and how gestures play a crucial role in classroom interaction. Some extracts from ESL lesson were analysed with special focus on the use of gestures by the teacher and learners. The results indicate that in order to understand ESL classroom interaction we need to consider gestures in addition to speech. The study suggests some implications which might be beneficial when analysing ESL classroom discourse. Keywords: Gestures, Classroom interaction, ESL teaching, Conversation analysis. Date A point or period of time associated with an event in the lifecycle of the resource 2014 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/8745857c93787856d74cfd67853b8e89.pdf c53ecb1261321ee5972576a84495a786 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Importance of Information Problem in Financial Markets Nedret DEMĠRCĠ Asst. Prof. Dr., Kırıkkale University, Department of Economics, Kırıkkale, Turkey nedretdemirci@kku.edu.tr Ercan SANCAK Asst. Prof.Dr., Fatih University, Department of Management Ankara, Turkey esancak@fatih.edu.tr Abstract: Information can be considered just as an economic good, because it has a price in the market like every economic product and to produce and disperse it is costly. Also it allows individuals to make choices that yield higher expected payoffs or expected utility than they would obtain from choices made in the absence of information. Information has some other special characteristics than other economic values. It is easy to create but hard to trust. It is easy to spread but hard to control. It influences many decisions. These special characteristics (as compared with other types of goods) complicate many standard economic theories and make sense on the financial markets. The goal of this paper is to emphasize on what information means generally in economics and especially in financial markets and to evaluate the economic problems in a detailed manner when ―imperfect information‖ is available in the financial markets. Key words: financial markets, asymmetric information, adverse selection, moral hazard, credit rationing. The Role of Information in Market Economy Information economics is a branch of microeconomic theory that studies how information affects an economy and economic decisions. In economic literature, nearly everything in the world can be treated a commodity, including information. However, it is not all treated the same. Information in economics as a commodity apart from other goods has special characteristics. It is easy to create but costly, because creating information has a transaction cost. It influences many decisions. These special characteristics (as compared with other types of goods) complicate many standard economic theories. Some of these characteristics can be put in line as follows. First, in the normal economy, the buying and selling of goods means those goods are no longer able to be used by others, at least not in the same condition. That simply does not exist in information economics. One person consuming information does not prevent another person from consuming that information. Second, in normal economic theory, items for trade are usually valued based on their scarcity, as well as their demand. If products become scarcer or demand is increased while supply stays the same, the price increases. However, that is not true in information economics. Information is not scarce and is becoming even less scarce all the time. Technological progress makes information more ample and easy to reach it. The first thing we have to emphasis on is that information has economic value because it allows individuals to make choices that yield higher expected payoffs or expected utility than they would obtain from choices made in the absence of information. This special characteristic of information leads the economy some important problems. Because of the transaction cost of having the complete information on contracts parties are not likely to have the same information. We call this incompleteness ―asymmetric information problem‖ or ―imperfect information problem‖. 129 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Asymmetric Versus Complete Information; a Close Look at the Problem Markets allow economic agents to separate the consumption and production of goods and services through trade. Thus, theoretically markets produce Pareto-optimal allocation of resources that is a situation in which no individual can be made better off without making someone else worse off. According to the Arrow and Debreu (1954) model when: 1. there is full information, 2. agents are atomistic (too small to influence market and prices) 3. there are no externalities (unpriced side effects like pollution) there are market clearing prices and that makes individual plans consistent (Spencer, 2000). When we consider above explanation, it is obviously assumed that there is an efficient market that allocates resources in a Pareto-optimal manner; once the market opens, equilibrium prices are found and exchanges are made without any problem. According to the Classical Economists, perfect competition is prevalent in the market hence information for every market type is perfect and reachable. That means for especially financial markets there is no friction, so the economy is a well- functioning device like a clock. Actually this argument of Classical School arises from Adam Smith`s ―Laissez-Faire Laissez-Passer‖ philosophy. As it is well-known, A. Smith and other Classics argue against the state intervention because of their prominent assumption arguing that there is a ―mysterious chef‖ bringing the market always into equilibrium. That ―mysterious chef‖ is sometimes called ―invisible hand‖. In Smithian thought, this ―invisible hand‖ commands the whole economy without any undesired results. As it is well known by economists, ―invisible hand‖ is none other than ―prices‖. Thus, according to this idea there is perfect competition in the market and information is perfectly attainable by every participant of this market without any barrier. The asymmetric information literature which looks at the impact of financial structure on economic activity focuses on the differences in information available to different parties in a financial contract (Mishkin, 1990;4). Asymmetric information is a situation in which one party in a transaction has more or superior information compared to another. This often happens in transactions where the seller knows more than the buyer, although the reverse can happen as well. For example agents on one side of the market have much better information than those on the other side. Borrowers know more than the lender about their repayment prospects; the seller knows more than buyers about the quality of his car. Disputes on asymmetric information theory go back to Hayek, in his path breaking work ―The Use of Knowledge in Society‖ he says ―The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form, but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess‖ (Hayek, 1945:519). Hayek implicitly accept that in a contract having more information of one party than another leads to asymmetric information problem. Imperfect Information and Its Mechanism As we can remember from classical economics, prices convey all the relevant information (especially about the scarcity value of resources). We now realize that there are a variety of other ways in which economically relevant information is conveyed, and that prices convey information other than that about scarcity. Producers and consumers realize that their actions—both individually and ‗‗collectively,‘‘ e.g., through aggregate movements in prices and quantities convey information, and this affects actions, so that the simple theory of consumer and producer behavior does not describe the behavior of consumers or producers in several central aspects (Stiglitz, 2000:1449). Because information possesses many of the properties of a public good, non-rivalrous consumption (which means that consuming information does not exclude someone else from also consuming it even if it is potentially possible, it is socially inefficient to do this ) and non-excludability (it is difficult to exclude others from its use), there is a presumption that information will be ―underproduced‖ in competitive market economies. There are also externalities associated with the acquisition of information since it is not easy (or is sometimes not possible) to appropriate the returns to collecting information (Islam, 2007:2). Correspondingly, the asymmetric information theory focuses on the differences in information that different parties have with different degree in a financial contract. For example in a lending transaction borrowers have an informational advantage over lenders because borrowers have more information about the quality of the investment projects they want to undertake than lenders have. Informational difference and its arising drawbacks in the financial markets like classic "lemons" problem first described by Akerlof (1970) in his pioneering article. Akerlof gives an simple and quite apparent example from 130 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo used car market. In his essay, he says the example of used cars captures the essence of the problem. This kind of used car‘s sellers are better informed in comparison with the buyers about the quality of cars. Defective cars in the market are called ―Lemons‖. We can explain Akerlof‘s idea with a simple example. Individuals want to buy used cars in the market but they don‘t know which car have high quality and which one have poor quality (e.g. lemon). On the other hand, they can make an estimation with q probability that car will be high quality and with (1-q) will be lemon. We are making an assumption here that q is the proportıon of good car and (1-q) is the proportion of lemons in second hand market. Information asymmetry arises here and sellers have more knowledge about their cars than buyers. However, good cars and bad cars sell at the same price due to buyers can not differ easily the good one from the bad (to be able to do that they have to get extra knowledge by paying its charge, e.g. that requires a transaction cost). Clerarly their prices have to be at different values because of the quality difference. If this situation continue in this manner, the seller of bad cars is going to sell ―lemons‖ at the price of good car and buy a new one that may be good with the probability of q. Obviously this will be a good trade for the bad car sellers. In Akerlof‘s example, sellers and buyers make different valuations about the cars for both high quality and poor quality. By using Let‘s say buyers evaluate high quality cars with a price W h and poor quality Wp and, sellers evaluate high quality with a price Vh and poor quality VP. In buyer‘s mind Wh ˃ Wp and according to the sellers‘ VP < WP and Vh ˂ Wh. In practice, the markets would merge into a single market with one and the same price for all units (Lofgren, Persson and Weibull, 2002:197-198). Suppose that this occurs and that the sellers' valuation of high quality exceeds the consumers' average valuation. In accordance with the former explanation, we make a new assumption that buyers evaluate all cars in the market with an average price W a. We may represent this case with the following inequality: Vh ˃ Wa, where the average valuation Wa is given by Wa = qWp + (1-q)Wh. In the market, consumers want to pay for the car at most W a. But this price is under Vh, what sellers want. Hence, high-quality sellers leave the market to low-quality goods, the lemons, due to demand for their good quality cars doesn‘t meet the price that they expect. Therefore the only machines remain in the market are bad quality. As a result, while good cars can not find their worth, bad cars are sold at a higher value that they don‘t deserve. Apparently bad cars drive out the good from the market30. Asymmetric Information and Deriving Problems Information asymmetry can lead to three main problems: 1. Adverse selection: immoral behavior that takes advantage of asymmetric information before a transaction. For example, a person who is not in optimal health may be more inclined to purchase life insurance than someone who feels fine. 2. Moral Hazard: immoral behavior that takes advantage of asymmetric information after a transaction. For example, if someone has fire insurance they may be more likely to commit arson to reap the benefits of the insurance. 3. Principal-Agent Problem: if information is asymmetrically distributed between those who make decisions (agents) and the theoretical beneficiaries of those decisions (principals), then the reward functions which govern firm decision-making may not have the form of simple valuation maximization assumed in the neoclassical theory (Greenwald and Stiglitz, 1990). Adverse Selection In accordance with the explanations in the previous topic, we can better identify “adverse selection” mechanism with following illustration: Buyer Knows Doesn‘t know every car‘s quality and Make decision according to average price $600 30 Excellent Car Good Car Fair Car Lemon Car Average Value Seller Knows $1500 $600 $300 $200 $600 This situation is known as Gresham‘s Law and is defined ―bad money drives out good‖. 131 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Table 1: The Mechanism of Adverse Selection Buyers know that the sellers of excellent cars won‘t sell for the average value, so they recalculate the average value without excellent car: ($600 + $300 + $200) / 3 = $366. With this new average price, only fair car owner will be wishful to sell car, and buyer will revise the average price once again excluding good car: ($300 + $200) / 2 = 250. At this time the only lemons will sell at this price, and last time buyer will revise average price. Last evaluation: $200 (that is lemon). According to the above explanation, at the end, only lemons will be sold in the second hand market and high quality cars will leave the market. This situation is called ―adverse selection”. This result is completely dissimilar what A. Smith argues in the classical theory. A firm or fund users have an incentive to present lenders with an evaluation of positive financial condition and have an incentive to persuade them about the positive return of the investment. If lenders knew perfectly the risks associated with each borrower, this would matter little; each borrower would be charged an appropriate risk premium. It is because lenders do not know the risk properties perfectly that this process of adverse selection has important consequences Because of lack of sufficient information, or having this information is costly about the riskiness of the projects, in the similar way that we developed in used car example, lenders will make a classification among the projects according to the their level of risk and define only one average interest rate to apply for all borrowers. But healthy projects with high level of returns will find this rate of interest is quite high and not affordable, on the other hand, poor quality projects with a high probability of negative result (that is lemon) will be demanding the loan at this high rates. As a result, poor investment projects will drive out the healthy projects from the market. This situation is called ―adverse selection‖ in financial markets. Moral Hazard The lack of appropriate information about the quality of borrowers may result in another problem called ―moral hazard‖ which effects the well-functioning of financial markest. Because the insufficient information that lenders have about the riskiness of the barrower, barrower has incentives to engage in activities that most probably will result in with a high loss (Mishkin, 1990:7). Because that low probability of positive return of the project there is a default risk at the end and this situation harm the lender. Moral hazard occurs when a barrower's behavior is hard to monitor and control and thus payment to that barrower is based on incomplete information. Thus, moral hazard takes place after having the credit from the lender. In financial markets, due to less information and low degree of control and monitoring about the barrowers‘ actions, barrowers have a tendency to deal with risky projects. In particular, if there is a deposit insurance the state provide to the financial institutions like banks, that encourages the lenders to monitor their barrower appropriately because they will not have to carry the full burden of losses. If the majority of the barrowers consist of risky projects, the total amount of default risk will be higher at that much. Hence, the abundance of the losses may reduce the total amount of credits in the financial markets. This circumstance is called “credit crunch” that is the real crises. So, better information on the economy helps borrowers and lenders make better decisions and may be expected to rise lending. Principal-Agent Problem Principal-agent problem occurs when one party, called an agent, acts on behalf of another party, called the principal. The agent usually has more information about his or her actions or intentions than the principal does, because the principal usually cannot completely monitor the agent. The agent may have an incentive to act inappropriately (from the viewpoint of the principal) if the interests of the agent and the principal are not aligned. For example the CEO of a firm knows more than shareholders about the profitability of the firm and may engage in some risky actions without the knowledge of the firm owner (shareholder). Consequently the firm faces a loss. Incentive problems may intensify when a firm is equity financed. Managers, who receive only a small fraction of any additional profit, are likely to put forth less than optimal amounts of effort (Stiglitz, Greenwald and Weiss, 1984:4). 132 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Credit Rationing One result deriving from the asymmetric information is credit rationing. Why credit is rationed? When there is an excess demand for credit, in order to meet this increase in financial market, lenders apply credit rationing mechanism instead of increasing the interest rates due to falling short of this demand. The adverse selection aspect of interest rates is a consequence of different borrowers having different probabilities of repaying their loan. The expected return to the bank obviously depends on the probability of repayment, so the bank would like to be able to identify borrowers who are more likely to repay. It is difficult to identify good bor-rowers, and to do so require the bank to use a variety of screening devices (Stiglitz and Weiss, 1981:393). As the interest rate rises, the average riskiness of those who borrow increases, possibly lowering the bank's profits because of the default risk. So, that increases the pool of the risky project and discards the high quality projects from market. In the figure, the space I shows the interest rate r* that maximize the expected returns of the banks. Both credit demand (LD) and credit supply (LS) are the function of the interest rate and at the rate of r*, credit demand exceeds credit supply. Excess demand is shown with Z. In the conventional analysis, the investors who are not eligible to get the credit will offer higher interest rates to the banks and in this way they will induce to increase the amount of funs supplied in the market. However, in the credit rationing mechanism a Walrasian market equilibrium is not realizied and, though the fund demand is not equal to fund supply, r* is the equilibrium interest rate (Jaffee and Stiglitz, 1990:854). When we look at the space II, we can find out that banks are not willing to lend credit with the rate above r* because of the adverse selection effect. From the viewpoint of banks, borrowers offering interest above the rate r* have a higher level of risk than the borrowers with rate r*. Consistently, former projects will have lower return in comparison with latter. Lower rate of R than r* shows this relationship. L L IV IV I z I Z LS 0 45 ( LS m r r* R III II G Figure 1: Credit Rationing in Financial Markets Source: Villanueva and Mirakhor, 516 133 LD r �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Space III represents the relationship between supply of funds and expected rate of return. For more rate of return the amount of funds supplied have to be increased. Space IV shows the relationship between supply of funds and the quantity of funds at equilibrium. When there is a credit rationing in the financial market, the equilibrium interest rate is realized at the rate r*. There is an excess demand at this rate r*, on the other hand the market clearing interest rate is rm. This rate is neither optimal nor effective for banks, because that provides the banks lower rate of return in comparison with the rate r*. Despite r* is not market clearing rate, it is both optimal and effective because banking sector profits are at the maximum level and the risky projects are excluded. As a result, credit rationing mechanism may be good solution for the adverse selection problem when there is asymmetric information about the credit market. References Akerlof, George A., ― The Market For Lemons: Quality Uncertainty and the Market Mechanism‖, The Quarterly Journal of Economics, Vol. 84, No. 3, August 1970, pp. 488-500. Greenwald, Bruce C., Stiglitz, Joseph E., ―Asymmetric Information And The New Theory Of The Firm: Financial Constraints And Risk Behavior‖, National Bureau Of Economic Research, Cambridge, May 1990. Hayek, F.A., ― The Use of Knowledge in Society‖, The American Economic Review, Vol. XXXV, September 1945. Islam, R. ―Economic Information and Finance: More information means more credit, fewer bad loans and less corruption‖, World Bank Policy Research Working Paper No: 4250, June 2007. Jaffee, Dwight Ve J. Stiglitz, ―Credit Rationing‖, B. M. Friedman Ve F. H. Hahn (Ed.), Handbook Of Monatary Economics, Elsevier Science Publishers, Volume II, Chapter 16, 1990 Lofgren, Karl-Gustaf, Torsten Persson, and Jorgen W. Weibull, ―Markets with Asymmetric Information: The Contributions of George Akerlof, Michael Spence and Joseph Stiglitz‖, The Scandinavian Journal of Economics, Vol. 104, No. 2, June 2002. Mishkin, Frederic S., ―Asymmetric Information And Financial Crises: A Historical Perspective‖, National Bureau Of Economic Research, Working Paper No. 3400, 1990, Cambridge. Ma 02138 July 1990 Spencer, Peter D., ―The Structer and Regulation of Financial Markets‖, Oxford University Press, New York, 2000. Stiglitz, Joseph E., Bruce Greenwald And, Andrew Weiss, ―Informational Imperfections On The Capital Market And MacroEconomic Fluctuations‖, National Bureau Of Economic Research Working Paper No. 1335, Cambridge, April 1984. Stiglitz, Joseph E., ― The Contributions of the Economics of Information To Twentieth Century Economics‖, The Quarterly Journal Of Economics, November 2000. Stiglitz, Joseph E., and Andrew Weiss, ―Credit Rationing in Markets with Imperfect Information‖, The American Economic Review, Vol. 71, No. 3, June, 1981. Villanueva, Delano Ve A. Mirakhor, ―Strategies For Financial Reforms: Interest Rate Policies, Stabilization, And Bank Supervision Ġn Developing Countries‖, IMF Staff Papers, Vol.37, No:3, September, 1999. 134 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 198 Title A name given to the resource The Importance of Information Problem in Financial Markets Author Author DEMİRCİ, Nedret SANCAK, Ercan Abstract A summary of the resource. Information can be considered just as an economic good, because it has a price in the market like every economic product and to produce and disperse it is costly. Also it allows individuals to make choices that yield higher expected payoffs or expected utility than they would obtain from choices made in the absence of information. Information has some other special characteristics than other economic values. It is easy to create but hard to trust. It is easy to spread but hard to control. It influences many decisions. These special characteristics (as compared with other types of goods) complicate many standard economic theories and make sense on the financial markets. The goal of this paper is to emphasize on what information means generally in economics and especially in financial markets and to evaluate the economic problems in a detailed manner when ―imperfect information‖ is available in the financial markets. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/6f7fbd72b0a3a619607ac62999ee3fb1.pdf 62cc6802b338b8d1e17b854ad0251817 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Importance of Numerical Flexibility In Turkish Labor Market and Competition Policy M. Akif ARVAS Res. Assist.(PhD candidate), Economics, Hacettepe University, Ankara, Turkey aarvas@hacettepe.edu.tr Suleyman ĠÇ Dr., Department of Business, Gaziantep University, Gaziantep, Turkey icsuleyman@yahoo.com Mehmet AYGÜN Assoc. Prof., Department of Business, 100. Yıl University, Van, Turkey maygun@yyu.edu.tr Abstract: Numerical flexibility, which has been common since Atkinson (1984), can be defined as a situation where the number of staff and the number of hours worked can be increased or decreased depending on the demand for labour. Within the "flexible firm model", numerical flexibility is seen as being designed to facilitate a rapid adjustment in headcount, in line with short-term changes in the level of demand for labour so that the number employed equals the number required at any time. Based on Labour Law no 4857, Turkey has adopted this approach as a competition policy in order to provide flexibility into labor market and to promote the competition of Turkish firms. Therefore, in this study, flexibility-based tools are discussed and evaluated in terms of competition policy. Introduction The flexible firm model developed by Atkinson (1984) resulted from studies carried out on the changing nature of employment in the UK during the 1980s. Atkinson concluded that changes in technology, training costs, working time and labour supply were the factors influencing and driving change in UK employment policies and strategies. The changes in employment policies and strategies, Atkinson believed, resulted in the formation of two employee groups―the core and peripheral. The core group consisted of full-time permanent workers and the peripheral group consisted of part-time, temporary and contract workers ( collectively termed ―atypical‖ by Atkinson). Today, flexibility in labor market has been a new competition strategy for firms and there has been a significant growth in flexible or ―non-standard‖ forms of employment. Since laborforce is a variable factor of production and because of impossibility of perfect substitution of investment goods for laborforce using today‘s technology, forces dynamic conditions in goods and factor markets to have a more flexible structure in terms of employment forms of firms and restructuring the job schedule. Hence, flexibility in labor market as a competition strategy can be expressed in two ways; external flexibility and internal flexibility. External flexibility, which allows firms to adjust demand for labor to workload, and numerical flexibility which is called employment flexibility are strategic methods and policies for firms to harmonize to rapidly changing economic conjuncture. Firms who adjust the number employed to workload are defined as ―flexible firm‖ and together with core laborforce of these firms, they―depending on business conditions― employ other kinds of employment such as temporal worker, part-time worker and external service act, and peripheral labor (Felstead, 1999, p.10). Therefore, numerical flexibility will be obtained by firm from employment of peripheral laborforce. Numerical flexibility is defined an employment type which enables employment of part-time and temporary worker according to fixed-term non-standart employment contracts as well as full-time workers with open-ended employment contracts (Kutal, 2002, p.33). This aspect of numerical flexibility has been taken into consideration and 493 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo flexibility in competitive market economies means the required use of workers when needed (TĠSK, 1999, p.23). This definiton puts forward the importance of numerical flexibility to firms. On the other hand, it has been stated that the diffusion of flexible employment types helps developing countries to employ low-waged laborforce to accelerate their economic growth. Working hours flexibility known also as internal flexibility creates another dimension of labor market flexibility as a competition strategy. Flexibility in working hours, in case when normal work period does not response to labor supply and demand, is defined as flexibility in the period worked in response to a change in work load of employer and in workers‘ demand for income-leisure time―within normal working hours limits ( OECD, 1990, p.23-24). It is stated that working hours short-cut is a different application of working hours flexibility (Bosch, G, P. Dawkins and F. Michon, 1994, p. 25–27). This method enables firm to adjust its labor demand to a fluctuation in demand for its goods produced. According to the labor demand model, it is assumed that firm has to adjust its labor demand to a change in economic conditions ( Borjas, 1996, p.138). it is further assumed that working hours flexibility is a strategy in which firm aims to protect its competitive power accross firms (Kuzgun, 2005, p.34). Based on a OECD regulation in 1985, it is pointed out that flexible working hours constitutes the numerical aspect of laborforce flexibility and comes to the same manner with the flexibility in labor input costs (Bosch, G, P. Dawkins and F. Michon, 1994, p. 25). In the same point of view, flexibility in working hours gives an advantage to firm to give a quick response with a minimal input cost to fluctuations in demand in goods market. Further, while working hours flexibility allows firm to feasible use of laborforce in number and time needed ( Centel, 2002, p.239). On the other hand in terms of workers it means that ―...it is an aggrement between employer and employee so that working hours needs to be adjusted to employee‘s conditions‖ (Centel, 2002, p.243). 2. Flexibility in Turkish Labor Market As A Competition Strategy 2.1. Flexibility As a Firm’s Competition Strategy It has been seen that factors which determine managerial strategy of a firm are aggregated under the two headings as external and internal; across external factors the state of markets, competitive conditions, economic fluctuations and legal regulations are mentioned, as for internal factors the human source is pointed out (Ergin, 1992, p.50-56). In this respect, within the context of new Turkish Labor Law, regulation neccessity for numerical flexibility and flexible working hours constitutes the legal framework of firms‘ new competition policies. Within this framework, part-time working, on-call working, compensatory working, short working, temporary secondment and labor subcontractor applications are considered. Among these, though temporary working has been expensively applied in Turkish labor market, it had not been legaly arranged. On the contrary, on-call working, compensatory working and temporary secondment have found place within the new labor law context. In Turkey, the factor that improves the effectiveness of labor market flexibility on determining firm‘s competition strategy has been the legal permittance given to private employment aggencies to be established. In order to shorten the temporary unemployment period, importance is attached to the matching of unoccuppied jobs with the people looking for a job. Thus, the private employment agencies have been accepted as instruments of active employment policy for the improvement of the matching capability of the labour market besides the public employment institutions. ― The aim of the employment service is to enable employers to identify and employ workers who are equipped enough to perform their jobs, and to help individuals find their first jobs, change jobs during their career, and to find new jobs when they become unemployed.‖ (http://www.oas.org/udse/esponal/documentos/cancun/01developingefectivES-D,Fretwell-docum.pdf). As of April 2010, 277 private employment agencies have started to operate and they have been distributed among 19 provinces in Turkey. These provinces are Adana, Ankara, Antalya, Balıkesir, Bursa, Denizli, Diyarbakır, EskiĢehir, Gaziantep, Hatay, Ġstanbul, Ġzmir, Kayseri, Kocaeli, Konya, Muğla, Sakarya, Tekirdağ and Trabzon (http://statik.iskur.gov.tr/0252/iller/01T%c%3bcm%20Liste.pdf). Meanwhile, 126 of these private employment agencies have been closed and the licences of five agencies have been cancelled by ISKUR (http://www.iskur.gov.tr/loadExternalPage.aspx?uicode=statozeisthdamburodagi). These data show that private employment agencies in Turkey have created a new sector within the service sector. While there is no data on how many people are employed by private employment agencies in Turkey, it is supposed that they have created labor opportunities at a specific rate. The indirect contribution of private employment agencies appears at the stage of providing matching services. Structural unemployment is one of the features of the labor market in Turkey. It is considered that thanks to these agencies, the decrease in the period of looking for a job is a partial solution for the structural unemployment. It is possible to say that 1.5% of those applying to private employment agencies in Turkey are already engaged in a business (Kuzgun,2008:12). Life time of a firm is the outcoming factor and it is based on the economic activities in the effects on the employment level. It is observed that the fact that employment service is provided by private sector firms as well as public institutions has led to creation of a sub-sector within the service sector and to creation of new job opportunities. This sector has been accepted as 494 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo an emerging market by the EU countries and it is stated that new employment opportunities have been created for 1,3 million people in the European Union in this way and that this figure corresponds to 1,9% of total employment. (http://www.eurociett.org/fileadmin/templates/eurociett/docs /position_papers/EurociettPositionPaper_Lisbon_Staregy_March_2006.pdf) 2.2. The Reasons For Adoption of Flexibility in Labor Market As a Competition Strategy in Turkey These reasons can be classified into two sub-headings. 2.2.1. External Factors The first external factor is globalization and its effect on the decisions regarding productive organizations of firms in Turkey. The second is to adopt the flexible labor market approach as it did in EU in the adaptation process of Turkey to EU. 2.2.1.1. Globalization Since competition in domestic and international market has gained big importance, recent atypical or nonstandart job contracts are emerged as well as typical/standart or normally interpreted job relations and job contract concepts. It is pointed out that, in process of globalization, the effect of international trade on employment has been more improved ( Liemt, 1997: s.240). In terms of competition, in the short-run, benefiting from the nature of labor force being variable factor of production in order to enhance the competitive power , firms use peripheral labor force in which they employ labor force in accordance with the workload. In this regard, it is agreed that the types of PostFordist organizations has been recently appeared in developed and developing economies by the result of coercive nature of international trade (Felstead,1999, s.9). Taking into consideration further the fact that the pressure of globalization and competition leads firms to seek for reducing the costs, it is stated that flexibility in the general level of labor force costs is one aspect of flexibility in labor market ( Elliot, 1997, s.301). Notably in the stage of economic crisis, providing flexibility in adjusting the employment costs is critically important for competing firms. Furthermore, a relationship is constituted between the use of labor force and having a flexible position and, it is emphasized the importance of possessing a flexible structure during the crisis (Arıkboğa, 2001, s.54). In terms of Turkey, it is expressed that the flexibility in labor force has risen as a system driven by globalization (DPT, 2001b, p.38). 2.2.1.2. The Adaptation Process of Turkey to European Union (EU) According to Kuzgun (2004), another reason of introducing different types of flexible employment into the new Labor Law is the adaptation process of Turkey to EU and it plays an important role during this process. The same approach has also been followed in the Eight Five-Year Development Plan (DPT, 2001, p. 145). This adoption, globally, has proved the fact that the EU is influential in individualizing the work relationships by the case in Turkey. Besides that, together with some types of flexible employment, absence of legal regulations seemed to be a lack in Turkey. This lack is first put on the agenda in the project of improving employment and efficiency in labor markets. 2.2.2. Internal Factors These factors resource from the structural futures of Turkish economy and labour market. 2.2.2.1. The Ever-Growing Unemployment In the aftermath of World War II, the numerical flexibility concept in the labor market in industrialized economies is another factor in determining different types of flexible employment and subcontracting which enables labor market to become flexible. On the other hand, it has claimed that the oil crisis in the mid of 1970s had strengthened the relationship among flexible types of employment producing a new unemployment wave ( Tuncay, 1995, p.57) Therefore, a tie between widespreading flexible types of employment and unemployment is constructed and at the end of the 20th century, as types of flexible employment become widespread, so does the employment possibilities ( Felstad, 1999, p.3). Likewise the idea that holds that there is a linear correlation between flexibility and levels of unemployment rates and that reforms need to be done for a flexible labor market (Rodriguez, 2003, p.37) 495 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo runs parallel with the idea that maintains that reforms in job law which should make labor market more flexible in 2003 in Turkey comparing with the high level of unemployment rates. The reason of the ever-growing unemployment in Turkey is the long-lasting economic crisis as an influential factor stimulating unemployment ( Kazgan, 2002, p.19). Years Unemployment rate % Underemployment rate % Underutilisation rate % (Unemployment + Underemployment) 1995* 1999* 2008** 6.9 7.3 11 6.7 6.9 3,1 13.6 14.2 14,1 Source: * Obtained from 8th –Year Development Plan, DPT, p. 102, ** Obtained from Turkish Statistical Institute (TÜĠK) News Bulletin. Table 1: Changes in Unemployment and Underemployment rates in Turkish Labor Market (1995-2008) (15+ Age) As it can be seen from the Table 1, in the period of 2005-2008, as a consequence of effects of the global crisis and economic instability on Turkish economy, while unemployment rate was 6,9 % in 1995, it increased to 7.3% in 1999, and to 11% at the end of 2008. But, in contrast to realized rates of underemployment in 1995 and 1999―6.7% and 6.9%―, it decreased to 3.1% in 2008. Under these conditions, underutilisation rate of work force, which is the sum of unemployment rate plus underemployment rate, increased to 13.6 % and to 14.2 %, in 1995 and 1999 respectively, but in spite of a considerable decrease in 2008, it slightly decreased to 14.1 % at the end of 2008 ( due to increasing unemployment rates). 2.2.2.2. The Share of Service Sector in Total Employment It is stated that there is a linear correlation between flexibility and increasing share of service sector in total employment (Felstead, 1999, p.12). In Turkey, in the sectoral distribution of employment in urban areas, service sector ranks first and it is followed by industry and agriculture sectors. On the other hand, if we look at the long-run expectations of employment in Turkey, it is seen that service sector is leading sector which will create an employment capacity for labour suppliers (ĠġKUR, 2003, p.13). According to Household Work Force Survey results, in both 2008 and 2009, considerable part of employment is engaged in service sector. As of 2009, the share of service sector employment in total employment reached to 50 %. The economic crises has led industry sector to provide less employment comparing to the numbers of 2008 (Table 2). 2008 2009 Sectors Employment Share (%) Employment Share (%) 5016 23.7 5254 24.7 Agriculture 5682 26.8 5379 25.3 Industry 10495 49.5 10644 50.0 Service 21194 100 21277 100 TOTAL Source: http://bulten.tuik.gov.tr/PreHaberBultenleri.do?id=6198&tb_id=2, 19 April 2010 Table 2: Sectoral Distribution of Employment, 2008-2009 (in thousands, 15+ age) 2.2.2.3. The Share of Unregistered Employment in Total Employment Unregistered employment is generally keeping the workers away from awareness of the government, employing unskilled workers, violating the regulations such as minimum age level (child labour), minimum wage, overtime, workplace standards, health and security of workers. 496 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo It is generally agreed that, in Turkey, there is an informal economy as well as the informal one and an unregistered employment beside the registered. Today, it is obvious that one of the most challenging problems economies have faced is informal economy and unregistered employment (TUSIAD, 2002, p.96). In 2009, According to the latest published survey results, the ratio of persons who worked without any social security related to the main job inclined to 42.3 % with 1.5 percentage point increase. The share of persons who did not have any social security in agriculture increased from 84.5 % to 85.8 % and that in non-agriculture increased from 28.6 % to 28.7 % compared to the same period of the previous year (http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=6229, 20 April 2010). By the expansion of types of flexible employment, employment of women, retired, young and handicapped labour force who are considered as secondary labour force have been increased, to participate in economic activities, in work place or at home. Besides that, it is observed that types of flexible employment are accumulated in product lines with low-demand of capital. For example, as a consequence of creating new job opportunities being restricted in Turkey, the labour force as unregistered are employed in product lines which do not require too much capital such as piece-rate wages system in return for producing at home (DPT, 2001a, p.46) Shifting production out of plant within the context of the organization of production means flexibility in organizing the job and provides an opportunity of reducing the production costs in terms of firm. Henceforth, flexibility in organization is seen by firm as a dominant competition strategy against its rivals (Ġġ KUR, 2003, p.35). In this respect, flexibility in production and in employment is an inevitable result of competition and is defined as realization of production out of plant employing outsider workers (TĠSK, 2004, p.34). Subcontractor application is another method to shift the production out of plant. The factors bringing about this application are changes in production process, expansion of small and medium-sized firms and the focus on privatization (Ekin, 2002, p.59). Since small and medium sized firms hold a near-position of subcontractor firm, they have a considerable share in total number of firms and in total employment and they emphasize the relationship between informal economy and firm size in Turkey. So, reshaping the subcontractor application within Labor Law carries considerable importance. Existence of small and medium-sized firms (SMEs) and shifting the production out of plant; are supported with the view of which classifies the capital system as dualist―primary and secondary― in acceptance of flexibility in labor market (Tai, 1994, p.16-17). When taking into consideration that subcontractor application enables firms to offset labor demand and to shift their production line into secondary sector, it would not be false to see the informal economy and subcontractor firms operating in this economy as secondary sector in Turkey. Furthermore, allowing for the operation of private employment agencies within this sector will speed up the tendency of firms towards the sector. In Turkey, basically, though subcontractor application became widespread in private sector, it also is becoming widespread in public sector. Among the reasons, decreasing the production costs in State Economic Enterprises (KĠT), willingness to work with problem-free worker groups and the thought in which easily privatizing the State Economic Enterprises are mentioned. Therefore, subcontracting is described the other way of privatization in public sector (Ekin, 2002, p.35). On the other hand, it is pointed out that subcontractor application is a key concept in international trade (Liemt, 1997, p.240). When looking at the examples of subcontractor applications in international field, it is observed that 32 percent of employers in excessively industrialized countries such as France, Germany and United Kingdom have shifted their own works to the subcontractors in the last three years and, in Turkey, the number of subcontractor employers and workers in the lines of business accounts for 15% of total labor force (Ekin, 2002, p.34) 2.2.2.4. Firm Size in Turkey Since small-sized firms have a more flexible structure, it possible to construct a relationship between flexibility in labor market and firm size. Firms having a flexible structure, in general, are small and medium sized. Owing to this structural feature, Firms in this size easily respond to changes in demand of goods and services. In this respect, the types of flexible employment as competition strategy are more important for these firms. According to the EU standards, firms employing 1 to 9 workers are defined as micro enterprise; and those employing 10 to 49 as macro enterprise (Kuruüzüm, 1998, p.37). But in Turkey, there is not a common standard on determining firm size taking number of workers employed as a basis. According to some determination, firms who employ 1 to 49 workers are considered small sized firms (http://www.kosgeb.gov.tr/kos.htm). Firms in this size, have a notably place in Turkish economy. In the same way, the abundance of small-sized firms in number is considered among structural features of Turkish economy (Bulutay, 1995, p.65). 497 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Size of Work Places (based on the Number of Compulsory Insured Person) 1-3 persons 4-6 persons 7-9 persons 10-19 persons 20-29 persons 30-49 persons 50-99 persons 100-499 persons 500-999 persons 1000+ persons TOTAL Number Compulsory Insured Person 1,228,315 855,295 613,074 1,198,952 699,524 898,516 848,127 1,753,236 408,122 371,805 8,874,966 of Share (%) 13.8 9.6 6.9 13.5 7.9 10.1 9.6 19.8 4.6 4.2 100 Source: www.ssk.gov.tr, Insured Person Statistics, January 2010, Table SS15, page 27, Table 3: Compulsory Insured Person Numbers According To Activity Branches and Work Place Size (4/a) According to Table 3, Firms, who employ 1-49 persons and defined as small sized in Turkey, account for 61 percent of total insured labor force. This founding shows, within the new Labor Law, the importance of arranging the types of flexible employment in terms of labor market in Turkey. Thus, in determining of employers‘ commitments, firm size is taken as basis and in general small firms have been legally protected ( Kuzgun, 2004, p.5-14). 2.2.2.5. Frequency of Cyclical Fluctuation In terms of firm, providing working hours to become more flexible during economic crises is crucial in relation with minimizing the labor costs. Because an anticipated crisis weakens the firms‘ adaptation and prevention mechanisms of cyclical fluctuations and threats firms‘ operational goals, values and predictions regarding sales and returns (Dinçer, 1998, p.385). The economic crises within the context of new Labor Law is accepted being one of the reasons of flexibilizing working hours and is arranged in scope of the article 65 in case of bringing short working in practice. In doing that, it is thought that cyclical and intense fluctuations experiencing in economic activities have been influential on this arrangement (Bulutay, 1995, p.87). In order to adopt a resolution for short working according to Labor Law, an economic crisis must be a general crises affecting the whole economy. By this approach, in paragraph (3) of article (3) in the act which regulates short working and the payment for short working, an economic crisis is defined as ―a situation in which events occurred in national and international economies give shock to the whole economy and establishments‖ (www.iskur.gov.tr/mydocu/mevzuat /yonetmelik45.html). A general economic crisis brings about changes in overall economic conditions in terms of firms. In this respect, it is argued that short working provides facilities to firms to cope with crisis and that short working during crisis is a key for feasible solutions in terms of firms (MESS, 1999, p.180). When analysing the demands for short working to Ministry of Labor and Social Security, as of 30 September 2004, it has seen that the whole demands have been made by firms operating in private sector, and that those firms according to the KOSGEB classification are mostly small and medium-sized (Kuzgun, 2005, p.45-46). According to Arıkboğa (2001), there is a relationship between the number of employees employed and firms‘ flexible structure and particularly in crisis period, flexibility is a feasible strategy. But, in arrangement of short working, firm size has not been taken a criterion (Kuzgun, 2005, p.47). This policy, regardless of how big firms are, is a result of the opinions to protect firms against economic crisis. While it has been aimed, by short working, to adjust firm‘s demand for labor to shrinking in the level of economic activities; the negative effects of employee‘s income loses caused by implementing of short working has been considered to be compensated by the payment for short working. The main determinant in employee‘s acquiring the rights of short working is the condition in that premium payment must be paid within the prescribed time limits. 498 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Conclusion Today, being connected to globalization, flexibility in labor market is adopted as a new competition strategy in terms of firm. By external and internal factors, the introduction of new regulations into the new Labor Law aiming at flexibilizing labor market has constituted the legal framework in determining firm‘s competition strategy in Turkey. The importance of new regulation based on numerical flexibility and flexibilizing labor market is vital in respect to determining competition policies. Labour market flexibility is seen as an important characteristic of a modern economy. Labor market flexibility decribes how labour markets function. A flexible and efficient labour market implies higher employment, and so an economy that is fairer (in terms of, for example, reducing social exclusion), as well as more competitive and more productive. It also implies an economy that is better able to adapt to the changing economic environment. External numerical flexibility refers to the adjustment of the labour intake, or the number of workers from the external market. This can be achieved by employing workers on temporary work or fixed-term contracts or through relaxed hiring and firing regulations or in other words relaxation of Employment Protection Legislation, where employers can hire and fire permanent employees according to the firms‘ needs. Internal numerical flexibility, sometimes known as working time flexibility or temporal flexibility. This flexibility achieved by adjusting working hours or schedules of workers already employed within the firm. This includes part-time, flexi time or flexible working hours/ shifts (including night shifts and weekend shifts), working time accounts, leaves such as parental leave, overtime. Arranging the both types of flexibility within the new Labor Law enables firms to determine their new competitive strategies. This arrangement, especially in private sector, will lead employment strategies based on the distinction between core and peripheral labor force to be emerged, and also will help this distinction to become common. Besides that, operations of private employment agencies and in general the demand for temporary employee by firms, both, will bring about a new expansion to the competition among rivals and will expand the application of the fixed-termed temporary working contracts. In this context, private employment agencies also will facilitate the applications of numerical flexibility as competition strategy. In the next stage, it is expected that expansion of flexibility would bring about a fragmented and more informal labor market in Turkey. References Arıkboğa, ġ. (2001). Business Management in Crises. Ġktisat Dergisi, Ġstanbul, p.410-411 Atkinson, J. (1984). Flexible manning – the way ahead. Institute of Employment Studies Bosch, G. (1994). Working Time in 14 Industrilies Countries. 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Yayın No:TUSĠAD-T/2002/12-354, Ġstanbul. www.iskur.gov.tr/mydocu/mevzuat /yonetmelik45.html, 2008 http://www.oas.org/udse/esponal/documentos/cancun/01developingefectivES-D,Fretwell-docum.pdf, 2008 500 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo http://www.kosgeb.gov.tr/kos.htm, 15 January 2009 http://www.eurociett.org/fileadmin/templates/eurociett/docs/position_papers/Eurociett_Position_Paper_Lisbon_Strategy_March_ 2006.pdf, 12 April 2010 http://www.iskur.gov.tr/loadExternalPage.aspx?uicode=statozeisthdamburodagi, 13 April 2010 http://statik.iskur.gov.tr/0252/iller/01-T%c%3bcm%20Liste.pdf, 15 April 2010 http://www.ssk.gov.tr, Insured Person Statistics, January 2010, Table SS15, page 27, 18 April 2010 http://bulten.tuik.gov.tr/PreHaberBultenleri.do?id=6198&tb_id=2, 19 April 2010 http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=6229, 20 April 2010 501 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 260 Title A name given to the resource The Importance of Numerical Flexibility In Turkish Labor Market and Competition Policy Author Author ARVAS, M. Akif İÇ, Suleyman AYGÜN, Mehmet Abstract A summary of the resource. Numerical flexibility, which has been common since Atkinson (1984), can be defined as a situation where the number of staff and the number of hours worked can be increased or decreased depending on the demand for labour. Within the "flexible firm model", numerical flexibility is seen as being designed to facilitate a rapid adjustment in headcount, in line with short-term changes in the level of demand for labour so that the number employed equals the number required at any time. Based on Labour Law no 4857, Turkey has adopted this approach as a competition policy in order to provide flexibility into labor market and to promote the competition of Turkish firms. Therefore, in this study, flexibility-based tools are discussed and evaluated in terms of competition policy. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/36cf481aa4c57d9a342dc71661bbf51a.pdf 84f3423fcc93b6449519b37810941662 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Importance of Personel Selling on Tourism Management Sebahattin KARAMAN Asst.Prof., Balikesir University The School of Tourism and Hotel Management TURKEY skaraman@balikesir.edı.tr Abstract:In tourism enterprises the aim of sale enhancement efforts is to draw attention of potential tourist, to inform about tourism enterprises, to stimulate the request of purchasing and to achieve the sale of touristic product. In tourism, the efforts of sale enhancement are performed via promotion methods like personel selling, advetisement, presentation and public relations. Since the element of tourism is the human's sevice to the human, the obligation of consumption in the place of production and the necessity of face commucatıon makes personal selling important for tourısm enterprises. Every employee who has one -to one commucation with tourist also contributes to the marketing of touristic product. In this study, the importance of personal selling on tourism marketing is explained. Definition of marketing Marketing, generally, contains all the activities taken place in order to transport the produced goods to the aimed consumer. In developed countries, marketing activities play an important role in enterprise activities. Transporting the produced goods or service with the most suitable marketing activity is aimed. There are various definitions of marketing in the related literature, depending on the background of the definer. Below is presented some of them: ―Marketing, basically, is the exchange process that is intended for meeting people's needs and demands. One side from the two or more sides gives something to the other side, and in turn takes something else which is valuable, in order to meet their own needs.‖ (MUCUK, 1994) ―Marketing is the activity system that is intended for planning, promoting, and transporting in order to present the goods or services that are satisfactory for the demands of the present and potential consumers.‖ (STANTON, 1981) ―Marketing is performing the enterprise tasks that direct the producer to consumer or to user traffic of goods and services that are aimed to satisfy the consumers and to meet enterprise goals.‖ (McCARTHY, 1994) American Marketing Association defines marketing as: ―Marketing is the process of planning and applying the attempts of creating, pricing, transporting and promoting the goods, services and ideas, in order to provide the exchange relevant to the goals of people and organizations.‖ (MUCUK, 1994) According to the definition of Philip Kotler, marketing is, ―a set of activities for reaching the organizational goals, and intended to provide the exchanges in the aimed markets.‖ (KOTLER, 2003) ―Marketing can be expressed as an exchange that takes place between dealers and consumers. In this process, the aim of the marketing is transporting the goods and services to consumer that are suitable for the needs and demands of the consumer, in the proper time and place, with an appropriate price.‖ (ALTUNIġIK, 2010) The principle goal of marketing is to profit by satisfying the needs and demands of the aimed consumers and clients. Before starting to produce, enterprises must make marketing a function of producing by doing a Market research. Marketing continues after producing, before the sale, and after the sale. Also, it is important to consider social needs besides consumer and client needs. This is needed so as to complete the goals and missions of the enterprise in the long run. Thus, marketing is the planning, managing, and controlling task of the marketing components that would profit or benefit by satisfying the demands and needs of the producer, consumer and society. (Avcıkurt, 2010) Tourism Marketing Tourism is a rapidly improving sector. For this reason, it is also an important source of income for national economy. Tourism marketing is gradually developing owing to the increase in the competition in tourism sector, diversity and complexity of tourism markets, and increasing consciousness of consumers. Number of polite and 553 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo conscious people who got used to dine outside their houses is rapidly increasing, comparing to past. These people want to realize their holiday experiences, achieve new experiences, and thrive culturally. Present-day holidaymakers are more selective when selecting touristic enterprises. Appealing these people to enterprise is only possible by giving more qualified tourism services, and more tactful marketing applications. (RIZAOĞLU, 2004) There are many definitions about tourism marketing. The most extensive and accepted of all is the made by World Tourism Organization. According to this definition; ―Tourism marketing is a management philosophy that, in accordance with the aim of a tourism marketing or touristic station, aims to make research, estimation and selection about the product by considering the features of tourism demands in order that tourism product takes a good place in the market, and the decisions made about the subject matter.‖ (ĠÇÖZ, 1996) It's the overall task related to the transportation of the touristic goods directly or via tourism agents, in the local, regional, national, or international framework, from the producer to tourist, the last consumer, and creating the desire about the touristic consuming needs. According to this definition, tourism marketing is the efforts about the presentation and sale of the goods and services that would meet the tourists‘ needs. Touristic goods and services can be sold to tourists, directly by the producing touristic enterprises, or resellers, travelling agents, or tour operators. It is essential in tourism marketing to research and know what the tourists‘ new needs are. (HACIOĞLU, 2000) It can be said that, the reason that products presented in tourism industry has individual features can be related to both touristic supply and demand, and the fact that tourism industry is resultant of different sectors. In tourism industry, mostly, service is presented. Basic features of services can be listed as: (1) to be abstract, (2) inherence of production and consumption, (3) its change depending on the producer and consumer of the service, and its change depending on place and time, and (4) not to be able to stock up. (KOTLER, 2003) Touristic Product Touristic product is a whole that consists of the products and services that can meet the consumers‘ needs. From this aspect, touristic product can be only one product or service (such as suntan lotion, a plane seat), or a combination of product and service that can meet the needs many times (such as accommodation, food service), or a package that includes all (a tour that includes ticket sale, guidance service, transportation, accommodation, food service, entertainment). (OLALI & ALP, 1986) In definitions of touristic product, the key point was the touristic product's combined feature. The reason that touristic product has a combined feature is that there are many elements that consists it. These elements can be listed as: Natural, cultural, historical, artistic values and having of the country or the region that appeals tourists, Enterprises, hotels, motels, restaurants, entertainment and sports facilities, and travelling agents that serve to tourists, Travelling enterprises that would provide the opportunity for the tourists to reach their destinations, The combined structure of the touristic product, the elements it includes, the consumer audience that it aims, differentiates touristic product from other industry products. (HACIOĞLU,1996) That people are the subject of tourism, the obligation of consuming the touristic products where they are produced, and requirement for face-to-face relationship and behaviors, make individual selling an important fact for tourism businesses. It contributes the marketing of the product, and becomes a part of the touristic product by interacting one by one with the tourist and providing the service. In other words, employee who directly gets into touch with enterprise is also included in the individual selling tasks. Thereby, employees must know the enterprise really good. As well as knowing enterprise‘s aims and goals, its culture, features of the market in which they work, changes and innovations, and what is the aimed people of the enterprise, their appearance, speech, attitude and behaviors increases their efforts regarding individual selling. In tourism sector, in which human relations are the most intensive, the area the individual selling (alias individual selling) is most used is travelling agents. In travelling agents, where most of the tourism sector's sales are done, individual relations are gaining importance, as the competition increases. Marketing Touristic Product As the touristic product is a product with high and flexible demand, tourism companies must have an organization that would be able to apply their sale increasing efforts. The aim of the sale increasing efforts in tourism companies are by attracting attentions of the tourists informing them about company products, by creating tend and desire to products and motivate them and make tourists buy their products. Sale increasing efforts in 554 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo tourism are done by individual selling, advertising, presentation, human relations and sales development tools. (Hacıoglu,Avcıkurt, 2008) In tourism, individual relationships gain importance as the main factor in tourism is people, and as automation does not take too much place in tourism. Individual selling that is done via speeches and meetings, face to face with potential consumers, is the most effective sale increasing effort. In tourism companies, various sale increasing efforts are applied considering the policy of the company, features of the company, economical condition, competence environment, and the market in which it works, features of the tourists that it services. It‘s possible to show discounts that company applies to its clients under specific conditions or during specific times, gifts that are given to clients, outer services as examples for the sale increasing efforts. (ĠÇÖZ, 1996) Components Of Tourısm Marketıng REKLAM INDVIDUAL SALES PUBLIC RELATIONS Newspaper Personal communication with customers Relation with the press Journal Sales agents‘; News Radio Selection Institutional personality Television Training Announcement Post Payments regions Dialogues Outdoor Editorship Message Budget Shared ads SALES PROMOTION Coupons Sample products Exhibition-Fair Competitiıons Direct Lottery Sale Points Discounts Money Refund Source: ODABAġI, 1995 Chart 1. Tourism Marketing Components Individual Sale and its Importance Individual sale is an element of promotion mixing. When developing individual sale strategy, marketing mixing elements are taken into account. Individual sale must be evaluated one by one, according to goods, price, distribution as well as other mixing strategies. In the past, individual sale employees and sale managers didn‘t have quite a role in goods planning and developing decisions. Based on the developing marketing concept, when deciding goods‘ feature and benefit, sale employees‘ knowledge is given a consideration as they are close to the market. Individual sale is an effort aimed to selling, which is done by speaking, meeting, and concluding. For tourism companies, on the other hand, individual sale is an effort, spent by the sale employees, by meeting with potential customers to sell. Individual sale is a primary promoting technique for tourism companies. Marketing actions of touristic companies is mostly depended on the individual sale relationships. Because trip and tourism is an activity for people. In other words, trips and tourism require human relationships and behaviors that are performed face to face in all aspects. Touristic product can not be seperated from the person who sells, presents, or serves it. Thereby, the success of the tourism company depends mostly on individual sale. (Avcıkurt, 2010). Even though promoting techniques have their individual benefits and features, none of them can be replaced with individual sale. Also, the fact that tourism activity is an intensive effort required activity, it brings individual sale to the foreground. The fact that consumers have to go to the place where the service is presented, makes individual sale more important compared to the other elements of promoting techniques. (RIZAOĞLU, 2004) All marketing efforts are devoted by gathering together the sellers and buyer to provide buyers with knowledge about the products and to realize the sale. Even though buying process might seem to be easy, in fact it is a pretty complex process. Companies, in order to promote the product or/and services that they produced or present, they have to plan the promoting mixing elements systematically, and apply these plans, and check these applications. Individual selling is presenting the goods or services in such a short time, and is the effort done by meeting and speaking one by one in order to sell the product. 555 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Consumer must be convinced to pay for the product or service. And in order to be convinced, feeling of the customer who will try the product or service for the first time must change. Considering the fact that feelings about the products are hard things to change, sale employee facilitates the consumers‘ information gaining process, by providing customer-product knowledge. Thereby, s/he provides the environment for the feeling change. During the sale introduction, by asking questions and including the customer in the communication process, s/he provides the opportunity for the customer to clear the question marks in mind. Sale representative, as well as determining the demands and needs of the customer, has the possibility to state customer's interests and values. And then, it is easier for a customer whose attitudes and values are taken into account, and who receives a message according to his/her demands and needs, to be convinced. (OBERHAUS, 1993) Customer, first gives a look at the quality of the service, and by evaluating the criteria such as suitability(time, price, installments, sale point etc.), ease of use, ease of access, delivery speed, and effective distribution, decides whether the service is appropriate to pay for or not. For this reason, it is necessary to know that the customer wants and to reflect this knowledge to business action. In this respect, it is necessary that companies create a competency advantage by presenting customer values as a priority, as well as creating a difference. (YAMAMOTO, 2003) The key point about customer loyalty is satisfying the customer. A satisfied customer, keeps paying for a long time, as the company creates new services and improves the present ones, pays more, makes compliments about the company and its services, does not mind other companies and their services, and does not mind price, gives recommendations to the company about new services. As the process cost falls into a groove, serving the present customers is much easier than finding new customers. (KOTLER, 2003) As it is clear in the statements above, individual selling is vitally important for providing consumers‘ permanency, and making chain-sells. Another important fact here is the sale employee who will realize the sale. Aims of the sale employee are briefly: -Contributing the image of the company and brand -Increasing consumers dependence to both brand and their choice -Providing the opportunity for the product and brand to be distinguished -Providing the opportunity to reach more and exclusive customers -Realizing sale by convincing the customer and maintain it. -Providing customer satisfaction and increasing it -Providing the appropriate service for the customer -Increasing the frequency and quantity of sale. Earning more to the company. -Increasing the knowledge about the products and services -Creating a conscious customer audience -Supporting postsale services. When realizing the aims of the company and promoting activities, individual selling aims we mentioned are devoted to increase the sales volume. In this respect, aims such as conserving market share and trying to enlarge it, catching the sales value that can increase the profit, earning new customers with certain specifications, detecting individual sale expenses must be regarded. Advantages and Disadvantages of Individual Sale Advantages Individual sale has some aspects that are superior to other mixing elements. The superior aspects can be summarized as: (KOZAK, 2006) 4.1.1. Can directly communicate with customers. 4.1.2. Can keep customers' attentions up 4.1.3. As it counts on face to face communication, provides the opportunity to observe the reactions right away. 4.1.4. Mutual communication is possible. 4.1.5. Can reveal customer's individual needs 4.1.6. Can focus on the subjects that customers are sensitive about 4.1.7. Can have friendship with their customers. Disadvantages  Its scope is limited. In certain time, few customers can be contacted. 556 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo  It's costly. For customers who are untidy geographically, it is costly to contact each customer.  It's long-term. It's not short-term, long and constant. Specifically, requires an application whose selling power is planned. Individual Selling's Leading Customers to Buy There are two sides in individual selling: Seller and buyer (customer). Firstly, for a successful sale, a good sale teams required. For this reason, we will investigate the features that a sale employee must have. In the other phase, behavior of the customer or client who is on the other side of the marketing will be investigated. For a successful sale, we need to know the customer well, and plan the sale process according to this fact. As our subject is individual sale and marketing in travelling agents, touristic customer behavior will be stressed. Qualifications of Sale Employee In individual sale, face to face communication is the subject matter. Hence, sale employees play a vital role for individual sale. Nowadays, companies that are aware of the importance of human relations must pay attention to selecting suitable employee for creating their sale power. The sale employees selected haphazardly without training about profession flat out and prevent company from having a competence advantage. Travelling agents, like other companies, must pay attention to some specifications in sale employees who will work in marketing and sale department. Individual sale skill is important. But promotion and advertising, is not enough to succeed. These are rather useful for attracting attention. At this point, sale employee takes to the stage and follows through. For this reason, intelligence, experience, education and some human psychology is required for travel consultant. A talented employee is able to turn a little curiosity to a deal, to create other little tours other than main trip (cross selling), to save hesitant investments. A weak sale employee, on the other hand, is like a drug for all companies. After the improvement of service, advertisement, and all other works, careless, rude, or inadequate presentation might easily cause customer to go back. (REILLY, 1987) Individual sale team travels very often to find potential clients and keep present clients. While working, they spend too much time and effort. And this increases the expense of the activities. But, marketer, as s/he communicates with the client face to face, can instantly evaluate the reactions and interests about the product. And thereby, can instantly answer customers‘ questions and replies to their objections and can follow through. Touristic Consumer When marketing any product or service, the first thing to take into consideration is the fact that not everyone is the buyer we are looking for. The first thing we try to do is, on the other hand, detecting people who can possibly our clients. Later on, getting to know potential clients in detail, and developing strategies according to these details. every consumer is not same. Everybody has different feature. As well as they can be financial, cultural, interests, age, health condition they can also be personal features. Touristic consumers form the focus of the tourism marketing activities. People who buy or have a tendency to buy all the tourism goods which are produced in tourism companies and tourism regions; on the other hand people who join the tourism activities are called touristic consumers. In tourism market sale it is quite important to be a good listener as well as an effective speech. A good sale employee must listen to the customer carefully. Too much speaking sometimes affects person or people in a negative way. That everybody has a different view must be taken into consideration. To control its truth, the comments of person who is speaking must be repeated in the process of speaking. Repeating what he or she says in a simple way shows that speaking is paid attention, understood, and given importance to the person. In tourism market, asking many questions to customers their needs are detected and must be presented alternative products. Conclusion It is very important for all companies that produce goods or services, to increase income through selling. A business that can‘t increase its income can‘t obtain its persistence because the primary goal of business is to get some income by selling goods or kinds of service. Today, in which we face and increase in competition and in service sector which doesn‘t have opportunity to stockpile, selling and marketing activities gain importance. For selling to 557 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo occur, businesses need a valuable marketing path. It‘s very hard to reach expected market ratio for a business which doesn‘t give any importance to marketing path for selling, no matter how king goods or service it produces. Personnel that is responsible for selling is also very important for marketing and selling policies to function correctly. Selling personnel is required to have necessary information and abilities. Especially in tourism sector, in which there is an abstract service and goods that cannot be checked beforehand, quality of personnel gains more importance. In struggles for tourism sector to market and have a persistence one of the most important factor is individual selling. Individual selling contribute to process of a customer‘s decision by one by one and personal communication. In tourism business every personnel that faces customers is like a selling staff. They can sell all the products outside their department or can inform customers about those products. So, they can contribute to selling success. Individual selling process is a complex process which begins with potential consumer‘s buying a product, and after selling, analyzing the consumer‘s satisfaction level. Thereby, a good and well-informed selling personnel gains customer loyalty for latter periods. References Altunısık, Remzi, Turizm Ġsletmelerinde Pazarlamanın Temelleri ve Ġki Farklı Pencereden Pazarlama Yöntemi : Üretici ve Tüketici Bakıs Acısı, (edit Cevdet Avcıkurt,Demirkol S.,Zengin B.), Turizm ĠĢletmelerinin Pazarlanmasında 7P ve 7C. Degısim Yayınları, Istanbul. ARIKAN, Rauf ve ODABAġI Yavuz, (1996), Tüketici DavranıĢları ve Tüketici Bilinci, EskiĢehir, Anadolu Üniversitesi Yayınları. Avcıkurt , Cevdet, (2010), Turizmde Tanıtma ve SatıĢ GeliĢtirme,DğiĢim Yayınları,Ġstanbul. Avcıkurt, Cevdet,Demirkol S.,Zengin B.(2009), Turizm ĠĢletmelerinin Pazarlanmasında 7P ve 7C. Degısim Yayınları, Istanbul. BUELL, Victor. P.(1966), Marketing Management, London, Pan Books L.T.D. FUTRELL, Charles M. ,(1996), Fundamentals Of Selling: Customer For Life, Chicago HACIOGLU, Necdet, (2000), Turizm Pazarlaması, Bursa, Uludağ Üniversitesi Basımevi HACIOGLU,Necdet,Cevdet Avcıkurt, Turistik Ürün ÇeĢitlendirmesi, Nobel Yayın Dagıtım,Ankara HACIOĞLU, Necdet, (2006), Seyahat Acenteciliği ve Tur Operatörlüğü, , Bursa, Uludağ Üniversitesi Basımevi ĠÇÖZ, Orhan, (1996), Turizm ĠĢletmelerinde Pazarlama, Ankara, Anatolia Yayıncılık ĠÇÖZ, Orhan, (2003), Seyahat Acenteleri ve Tur Operatörlüğü Yönetimi, Ankara, Turhan Kitabevi KOTLER, Philip, (2003), Marketing Management, New Jersey, Prentice Hall Publications KOZAK, Nazmi, (2006), Turizm Pazarlaması, Ankara, Detay Yayıncılık McCARTHY, E. Jerome, (1994), Basic Marketing, A Managerial Approach Ġllinois: Irwin,Inc. MUCUK, Ġsmet, Pazarlama Ġlkeleri, Ġstanbul, Der yayıncılık OBERHAUS,Mary A., (1993), Professional Selling, A Relationship Process, Newyork, Dryden Press ODABAġI, Yavuz ve OYMAN, Mine, (2001), Pazarlama ĠletiĢimi Yönetimi, , Ġstanbul, MediaCat OLALI, Hasan, ALP, T, (1986), Turizm, Türk Ekonomisindeki Yeri, Ġzmir, Ofis Ticaret Matbaacılık REILLY, Robert T. , (1987), Seyahat ve Turizm Pazarlama Teknikleri, Ankara, Kültür ve Turizm Bakanlığı Yayınları RIZAOĞLU, Bahattin, (2004), Turizm Pazarlaması, Ankara, Detay Yayıncılık 558 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo YAMAMOTO, Gonca Telli, (2003), BütünleĢik Pazarlama, Ġstanbul YÜKSELEN, Cemal, (2003), Pazarlama: Ġlkeler-Yönetim, Ankara, Detay Yayıncılık 559 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 274 Title A name given to the resource The Importance of Personel Selling on Tourism Management Author Author KARAMAN, Sebahattin Abstract A summary of the resource. In tourism enterprises the aim of sale enhancement efforts is to draw attention of potential tourist, to inform about tourism enterprises, to stimulate the request of purchasing and to achieve the sale of touristic product. In tourism, the efforts of sale enhancement are performed via promotion methods like personel selling, advetisement, presentation and public relations. Since the element of tourism is the human's sevice to the human, the obligation of consumption in the place of production and the necessity of face commucatıon makes personal selling important for tourısm enterprises. Every employee who has one -to one commucation with tourist also contributes to the marketing of touristic product. In this study, the importance of personal selling on tourism marketing is explained. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory