International diversification can be defined as the sale outside the country in which the firm operates. The firms that want to benefit from the potential market share, cheaper resource and labour opportunities and advanced technology outside the country in which they operate and to decrease their costs and increase their sales prefer international diversification strategies. The first step of the firms implying this strategy is to make import-export and then to make joint ventures, mergers and acquisitions. The aim of this study is to determine the effects of international geographic diversification degrees and internal factors of the firm on firm performance. The relationship between international geographic diversification degrees, internal factors of the firm and firm performance of the 40 firms analyzed in the research model is measured by using Panel Data Analysis. According to the results of the researh model, capital density positively affect ROA, while unrelated diversification degree affect it negatively.
