...deeper understanding of local culture, people and their approach to business and life values in general. When making a business decision on whether to invest to Turkey, mainly economic, political and cultural factors shall be taken into consideration. Strategic location Turkey with an area of 784 mil km2 (Central Intelligence Agency [CIA], 2013) can boast about its geographical location of high strategic importance. The country is located on the crossroads of 3 continents and has borders with 8 countries, which opens unique business opportunities in Europe, Asia, the Middle East, the North Africa, Russia and CIC. In addition to that, the attractive Turkish coastlines have made Turkey the 6th most popular touristic destination in the world (PMISPA, 2015), which is one of the advantages when investing in Turkey. Turkish infrastructure constantly develops as well. There are over 110 airports in Turkey, an extensive railway system and a profound shipping system, which enable the flexible and rapid business transactions, as well as easy access for foreign visitors. In order to meet the latest demands for growing economy, the government of Turkey further supports major projects in...
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...RESPONSIBILITY REPORT It is Turkish Airlines’ responsibility to act and promote sustainability as a commitment to the environment. A. Fuel Efficiency Program In the beginning of 2008, Turkish Airlines started a collaborative study with IATA Green Team and has begun implementing a Fuel Efficiency Program aimed at increasing fuel efficiency and reducing the carbon emissions. The program involves measuring and monitoring of fuel efficiency initiatives and reporting to the Fuel Steering Committee which consists of competent and dedicated personnel from key departments such as Flight Operations, Flight Planning and Dispatch, Engineering and Maintenance, Finance, Marketing and Sales. The initiatives undertaken within the program to increase fuel efficiency and to reduce carbon footprint could be gathered under the umbrella of below topics: 1. Optimizing the operations: Since 2008, more than 70 projects to optimize operations in order to reduce carbon footprint have been introduced and implemented. Some of these operational optimization projects include: Pilot technique, optimizing the use of APU (auxiliary power unit) while the aircraft is on ground, introducing a new optimized flight planning system, optimization of the routes and aircraft speed, aircraft weight reduction (fly away kits, magazines, containers, potable water, catering equipment), aircraft modifications (winglet and sharklet), engine wash. 2. Investing in new technologies: Turkish Airlines takes the...
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...Institutional Structures Institutional Structure of Turkey At a first glance, Turkey has a diversified economy, excellent infrastructure, and a legal and social structure of a developing nation. Proximity to Europe, integration with European markets, the external anchor of the European Union accession, and a lengthy track record of solid economic management and structural reform are the drivers of Turkey’s long-run prospects (World Bank, 2010). Turkey’s high degree of integration with the world economy, through both trade and financial channels, resulted in the country becoming vulnerable to the impact of the global recession, with the economy contracting by 4.7% in 2009. That being said, the economy has now recovered to pre-crisis levels with growth reaching 7% in 2010, shown to be a larger growth than almost all European counterparts. Despite the economic and political expansion in the last 10 years, Turkey’s battle with corruption, unemployment, income inequalities, and the Kurdish problem have been risk factors for any business that considers investing. According to corruption rankings, Turkey was ranked below South Africa, and tied for a spot with Cuba (Transparency International, 2010). Sociopolitical Structure Turkey is a parliamentary democracy with a free market economy. Since legal reforms instituted in 1926, Turkey's judicial system has been based on the Swiss Civil Code, the Italian Penal Code, and the Neuchâtel (Swiss) Code of Civil Procedure. The 1982 Constitution...
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...The Economic Impact of Opening the Armenian-Turkish Border Mher Baghramyan Armenian International Policy Research Group Armenia Norwegian Institute of International Affairs (NUPI) Regional CompetenceBuilding for Think-Tanks in the South Caucasus and Central Asia 2012[2009] Mher Baghramyan Email: MherBaghramyan@gmail.com The Economic Impact of Opening the Armenian-Turkish Border Abstract: This research attempts to analyze and evaluate the possible economic impact of opening the Armenian-Turkish border. Results obtained by analyzing currently existing trade flows are combined with opinions and estimates gained during interviews with experts, businessmen, and government officials, as well as from mass-media and professional publications. Different sectors of the economy such as energy, tourism, transportation and agriculture are considered. Sectors of the Armenian economy that might have competitive advantage or disadvantage after the border is opened are also identified. Policy makers should pay special attention to those sectors that are expected to be most affected, while measures must also be developed to protect vulnerable sectors. In order to maximize the expected benefits of the border opening, the government should also facilitate improvements in the overall competitiveness of Armenian companies by investing in infrastructure in the border regions, such as railways, roads, warehouses and providing transparent, fair and effective public services, in particular...
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...policies of the Government.“ Price stability denotes a level of sustainable inflation low enough that economic agents may ignore it in their investment, consumption and saving decisions. The largest contribution that the Central Bank has made and can make to strong, stable and sustainable growth and increased employment is to achieve and maintain price stability. Inflation Targeting Regime In 2002, the Central Bank adopted a modern monetary policy strategy, namely the “inflation targeting regime”. During the implementation of the implicit inflation targeting regime of the 2002–2005 period, the Bank tried to lay the basis for the regime by ensuring the necessary pre-conditions, strengthened its technical and institutional infrastructure, developed estimation models and expanded its data set. During this process, the Research Department was restructured as the Research and Monetary Policy Department and the Communications Department was set up to ensure effectiveness of communications policies. From 2005 onwards, the Monetary Policy Committee started to announce, in advance, its meeting dates as a yearly calendar, to increase predictability of policy decisions. The outcome of this entire process was the explicit inflation targeting regime that started to be...
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...Turkish Economy and Business 1. Turkey has been one of the fastest growing economies in the last 10 years. What have been the main drivers of this rapid growth? a. Fast recession recovery: The painful experience of 2000-01 meltdown that lead to an increase in public debt from38% to 74% of Turkey’s national income, made Turkey better prepared to handle the next crisis. b. Attractive foreign direct investment destination, which grew 20 times from 1990s c. Young and vibrant demographics: Current population of 72 mil with an average age of 29 that makes the young entrepreneurs amongst industrious people d. Europe’s 6th and the world 16th largest economy. e. Strong financial sector and one of the biggest exporter of construction material(cement), car, textile, and agri-business f. Soring share of export to middle east g. Relatively low labor costs compared to higher costs European labor market h. Recent advancement in medium to high-tech sectors i. Recent betterment of the neighboring markets: Russia, Iran, other Middle east countries j. GDP growth rate at 6% between 2002-08 k. Inflation of 9% from 75% a year in 1990s. l. Utilizing its Special geographic location to be the energy corridor amongst Europe ,Middle east & North Africa m. Attempt to normalize relations with all neighboring countries including Armenia. n. Keen and long-term interest in becoming an EU member ...
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...Value Chain Challenges Toyota has one of the most streamlined global value chains of any organization. Even so, the organization sees challenges when investing in different countries around the globe. Iran and Turkey will be evaluated as Toyota looks to expand into countries where they currently do not operate. The evaluation will include an analysis of the legal and ethical issues, political stability, financial considerations, infrastructure, geography, suppliers, manufacturers, socioeconomic and cultural factors. Legal and Ethical Issues Doing business in Iran is taken personal on every level; from government officials to working employees. Networking is usually done through friends and family. Asking for favors is never an issue as long as they can be repaid. Iran always has been seen as a security concern to the United States and other countries. Iran has been targeted by the Financial Action Task Force for money laundering and ties with Latin American countries. Speculation of Iran’s association with the Venezuelan government has Iran paying them to mine uranium for the Iranian government (Ethics World, 2010). Turkey is out to fix the corruption within its country by establishing harsher legal policies and regulation that allow the country’s businesses to meet EU standards of governance. Turkey’s new outlook on life can be summed up in a quote found on an international blog site, created by Aleksander Shkolnikov. “When governments are corrupt, there is less incentive...
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...TURKISH AIRLINES HISTORY Turkish Airlines is the national flag carrier airline of Turkey, headquarter is in Atatürk Airport in Yeşilköy,İstanbul. Turkish Airlines was established on 20 May 1933 as State Airlines Administration. It services to 41 domestic and 202 international airports in Europe, Asia, Africa and the Americas. Turkish Airlines has been a member of the Star Alliance networks since 1 April 2008. The chairman of Turkish Airlines is Hamdi Topcu and the CEO of Turkish Airlines is Temel Kotil. Also with an operational fleet of nine cargo aircraft, they serves 47 destinations. Their domestic competitors are: Pegasusu Airlines, Onur Air, Atlasjet. International competitors: Lufthansa, Aır France, British Airways etc. Turkish Airlines award for Europe’s Best Airline, Southern Europe’s Best Airline and the World’s Best Premium Economy Class Airline Seat for years 2011,2012 and 2013. Also they have been selected the Airline of the Year by Air Transport News at the 2013 Air Transport News Awards Ceremony. Turkish Airlines was chosen as the offical carrier by Europe’s leading football clubs such as: Borussia Dortmund, Aston Villa and Manchester United. Moreover they made sponsorship and promotion with some athletes and actor: Lionel Messi, Kobe Bryant, Caroline Wozniacki, Kevin Costner and Wayne Rooney. Furthermore the company is the primary sponsor of the Turkish Airlines Euroleague since 2010 and...
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...has the world's 15th largest GDP and 17th largest Nominal GDP. Like many economies, the Turkish economy has been affected by the global financial crisis with its Finance Ministry reporting that Turkey's budget deficit swelled to 23.2 billion Turkish liras ($15 billion) in the first half of 2009, 13 times higher than a year earlier. In 2009, the Turkish Government introduced various economic stimulus measures to reduce the impact of the financial crisis such as temporary tax cuts on automobiles, home appliances and housing. Turkey has a large and growing automotive industry, which produced 1,024,987 motor vehicles in 2006, ranking as the 7th largest automotive producer in Europe; behind Germany. In 2008 Turkey produced 1,147,110 motor vehicles, ranking as the 6th largest producer in Europe and the 15th largest producer in the world. The automotive industry is an important part of the economy since the late 1960s. The companies that operate in the sector are mainly located in the Marmara Region. With a cluster of car-makers and parts suppliers, the Turkish automotive sector has become an integral part of the global network of production bases. The Turkish economy is growing, they have strong companies, which translates into great business partners and they are implementing all modern technologies at a fast rate. To support the business growth, they are working on a great infrastructure: from...
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...MIDDLE EAST TECHNICAL UNIVERSITY THE FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN TURKISH ECONOMY A TERM PAPER SUBMITTED IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS OF THE COURSE ECON 466 DEPARTMENT OF ECONOMICS BY VEYSEL ERDEM TORAMAN FALL, 2012 ABSTRACT This paper elaborates on the foreign direct investment and the economic growth in the Turkish economy by surveying literature and constructing empirical analysis. The Turkish economy and its brief history with foreign direct investment is analyzed following and both empirical studies and researches showed that the low and inadequate levels of foreign direct investment in Turkey has no effect on economic growth. 1. INTRODUCTION In simplest economic terms, investment is what makes the economy grow in terms of inputs of production, technology and other instruments causing the production process to occur. An in a globalized worlds of ours, the investment could be foreign or domestic whether the economy is not eligible to support their own, open to trade or highly geopolitical. Foreign investment may bring foreign currency, technology transfer, skilled labor etc. and all of those are crucial for a country to grow in both financial and real terms. In other words, in today’s world, for most of the countries, attracting and getting foreign direct investment is very important. There are economies that have almost 20-25% of their GDP’s as foreign investment. The types of this foreign investment may be direct...
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...The Potential Product To Be Market In Turkey Agriculture has always been one of the leading sectors in the Turkish economy, largely for natural reasons: the rich soil sources, biological diversity, good climate and geographical conditions. There is also a tradition of hardworking farmers and, more recently, private entrepreneurs interested in investing in Turkish agriculture. Agriculture has an important impact on the social and economic development of Turkey since it meets the majority of the population’s food requirements domestically and prevents Turkey from being dependent on international sources and also supplies the raw materials of other sectors dependent on agriculture. The share of agricultural production in Turkey’s GDP was 8.3 percent in 2009, down from 10.1 percent in 2000. During this period, Turkey continued its economic transformation from agriculture towards industry and services sector. Despite the decreasing share in GDP, agricultural production has been rising since 2000. In 2007, output fell due to drought, however starting from 2008 it has recovered. Agricultural production in 2008 was 73 billion Turkish Liras and in 2009 was 79 billion Turkish Liras. As of March 2010, the Turkish agriculture sector employs 5.2 million people which constitute approximately 24 percent of the total employment in Turkey. Employment in agriculture has been steadily declining, by approximately 33 percent from 2000 to 2010. Considering the increase in the production during the...
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...The Logistics Industry in Turkey November 2013 1 Disclaimer Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) submits the information provided by third parties in good faith. ISPAT has no obligation to check and examine this information and takes no responsibility for any misstatement or false declaration. ISPAT does not guarantee the accuracy, currency, reliability, correctness or legality of any information provided by third parties. ISPAT accepts no responsibility for the content of any information, news or article in the document and cannot be considered as approving any opinion declared by third parties. ISPAT explicitly states that; it is not liable for any loss, negligence, tort or other damages caused by actions and agreements based on the information provided by third parties. Deloitte accepts no liability to any party who is shown or gains access to this document. The opinions expressed in this report are based on Deloitte Consulting’s judgment and analysis of key factors. However, the actual operation and results of the analyzed sector may differ from those projected herein. Deloitte does not warrant that actual results will be the same as the projected results. Neither Deloitte nor any individuals signing or associated with this report shall be required by reason of this report to give further consultation, to provide testimony or appear in court or other legal proceedings, unless specific arrangements thereof have...
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...to be an iconic marque symbolized with luxury and elegance since 1913 (Aston Martin, 2015). However, Aston Martin has slowed down the market demand in Europe and North America (KPMG, 2013: 12). Nevertheless, Aston Martin plans to do an investment to expand the global market (Tift, 2015), Meanwhile, because Turkey is the fastest rising country for luxury cars, it seems advisable to target Turkey as a potential developing market (Porturkey, 2013). This report will attempt to evaluate the expansion of Aston Martin in Turkey with macro PESTLE analysis, followed by SWOT analysis, a market entry strategy and concluding recommendation for future marketing strategies based on the previous analysis. 2. PESTLE analysis 2.1. Political Turkish politics has become more stable and 50 political parties has compete in freedom, Turkey's political development is moving towards the EU accession process, the rule of law and civil liberties have been actively improved (Abylkassymova et al, 2011: 8; World Bank, 2015). Moreover, Turkey has significantly low trade barrier due to its customs union with the EU, Foreign companies are attracted by low income tax of 20%, which is an important driver of foreign direct investment(FDI) (Abylkassymova et al, 2011: 11). Furthermore, Turkey is a place where relatively easy to begin a business, as reported by the World Bank’s Doing Business Report 2015, which ranks Turkey above Italy and Greece, and also significantly exceeds the fast economic growth...
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...The Energy Sector: A Quick Tour for the Investor November 2013 Investment Support and Promotion Agency of Turkey ©2013 Deloitte Türkiye. Member of Deloitte Touche Tohmatsu Limited Disclaimer Republic of Turkey Prime Ministry Investment Support and Promotion Agency (ISPAT) submits the information provided by third parties in good faith. ISPAT has no obligation to check and examine this information and takes no responsibility for any misstatement or false declaration. ISPAT does not guarantee the accuracy, currency, reliability, correctness or legality of any information provided by third parties. ISPAT accepts no responsibility for the content of any information, news or article in the document and cannot be considered as approving any opinion declared by third parties. ISPAT explicitly states that; it is not liable for any loss, negligence, tort or other damages caused by actions and agreements based on the information provided by third parties. Deloitte accepts no liability to any party who is shown or gains access to this document. The opinions expressed in this report are based on Deloitte Consulting’s judgment and analysis of key factors. However, the actual operation and results of the analyzed sector may differ from those projected herein. Deloitte does not warrant that actual results will be the same as the projected results. Neither Deloitte nor any individuals signing or associated with this report shall be required by reason of this report to...
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...its peak in the late 16th century under Suleiman the Magnificent, boasting a vast empire that stretched over three continents. However, after the failure of the Ottoman plot to seize the Austrian capital, Vienna, the empire entered a gradual decline. Over the course of 4 centuries, the Ottomans would lose grip over their conquered territories, its borders creeping closer and closer to Constantinople. Nevertheless, the Ottomans remained a force to be reckoned with and an empire of enviable size. Throughout the mid to late 19th century, the Ottoman government would oversee an era of widespread social, political and economic reform known as Tanzimat, Turkish for reorganisation. Some of the key reforms included emancipation of non-Muslims, reorganisation of the military and financial system, the building of rail and telegraph infrastructure and a boom in the size of the Ottoman bureaucracy. In 1876 an Ottoman Constitution was introduced. While...
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