The Importance of Logistic Villages in Increasing International Trade: The Case of Turkey-Italy

ABSTRACT. The emergence of the phenomenon of globalization and global competition is not only a result of the developments in information technologies but also of logistic activities. With the effective use of the information technologies in the production and marketing processes of the businesses, the competition among enterprises has increased. Enterprises - in such a developed competitive environmenthave recognized the importance of logistic activities in the point of minimizing their costs, supplying their products efficiently and quickly and also transporting these products to their customers at the same speed and efficiency In this context, logistics has become one of the basic processes that the businesses emphasize importantly, ceasing to be support activity for the businesses. In this study in which the advantages provided by the logistic villages in the competition in question with the logistic activities' beginning to be seen as a means of competition will be evaluated, the effect of the establishment of logistic villages on increasing the mutual trade by examining the international trade figures carried out between Turkey and Italy in the last ten years and the cost advantages to be provided with the establishment of logistic villages by conducting a survey on many enterprises trading between the two countries are evaluated for enterprises. It is presented with current data that international trade volume will increase and logistic costs will decrease between two countries in consequence of the completion of logistic villages in Turkey.JEL Codes: M10; M30; D41; L90Keywords: logistics; logistic village; cost advantage1. IntroductionThe event of globalization, which developments in information technologies have accompanied it with, has removed commercial limitations among countries. By removing commercial limitations enterprises face with both ruthless and enabling aspects of competition all around the world.The event of global competition occurs when the world becomes a market. For enterprises operating in the environment of global competition to survive and to have the upper hand on opponents it is necessary to adjust the necessities of competition environment. For competitive superiority adopting one or a few of quality, cost, flexibility and service dimensions accepted as competition priorities and applying them to work processes present enterprises some advantages. Considering the fact that these conditions related with competition change as well as continually developing information technologies, enterprises should organize all processes towards changeability event, follow innovations brought by information age closely, and apply these to all work processes. Surely, it is impossible for enterprises to comply with continually changing competition conditions by developments in information technologies one by one. This situation is related with not only internal dynamics but also external dynamics of enterprises. Government policies of countries where enterprises operate are the primary ones on these dynamics. Profitability of enterprises has eventually direct-relation with positive situation of country economy. International relations, geopolitical position of a country and governments' eagerness to provide environment for enterprises operating in global competition environment present lots of advantages for enterprises. Maybe one of the important environments is 'logistic village' needs to be presented which provides the transmission of enterprises' products to international markets at minimum cost and maximum speed (Ceran, 2010:1).2. Concepts of Logistic and Logistic VillageLogistic gives possibility for the transmission of enterprises' products to ultimate consumers at lower costs and on time without thinking distance in the world trade in which international competition is harsh and it is impossible to increase market shares, and also contributes to enterprises' functioning for global aims (Engin, 2008:10). …