Two among many of the consequences of the current era of globalization are the increasing dependence of the state on capital and the rise of economic statecraft as a tool of foreign policy influence, both of which have brought to the foreground the role of organized business in political affairs. This paper argues that organized business has become a key player in foreign policy making, and deals with the question of how and to what extent business associations influence foreign policy change. Two cases of foreign policy redirection from Turkey form the empirical basis of the paper, which are the decision to enter into a Customs Union with the EU in the 1990s and the recent paradigm shift during the Justice and Development Party (AKP) government placing greater emphasis on relations with Asian and African countries. The role of business associations in both cases are investigated comparatively utilizing a model borrowed from economics literature, the principal-agent model, which is used within an international political economy (IPE) framework. Similarities and divergences in these two cases are identified and discussed with the aim of offering an insight on how changes foreign policies are influenced by organized business groups.
