...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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...European Companies Making Investment in Turkey Table of Contents 1. Introduction 3 2. Situation 4 3. Problems, Solutions and Implıcations 4 3.1, Bureaucracy and Governmental Difficulties 4 3.2, Human Resource Difficulties 5 4. Evaluation 6 5. Conclusion 7 6. List of References 8 1. Introduction Foreign direct investment (FDI) is a type of investment, which refers to the investment made in a foreign country and therefore is a crucial ingredient of a successful economy, especially for developing countries. In recent decades, communication between developing and developed world has increased dramatically. Similarly, the world trade rose significantly. According to the UNCTAD’s Global FDI Index (see Figure 1), foreign direct investment of European Countries increased 18 times between 1980 and 2013. Under these rapid changes, in order to gain economic advantages, countries are trying to attract more and more foreign investment. For instance, in the last decade Turkey has shown huge development in FDI and is now the 18th largest economy in the world. In addition, 70% of the total foreign direct investment of Turkey is coming from European Countries. For these reasons, Turkey is expected to be the new economic hub for the European economies and this makes Turkey an ideal investment location. This essay will first demonstrate the current status of Turkey and then examine two obstacles of entering in Turkish market and investing in Turkey. In the final part these...
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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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...Turkey Investment Risk Analysis Introduction Today Turkey is preserved as one of the countries that offer a solid ground for foreign investment. According to the Republic of Turkey Prime Ministry Investment Support and Promotion Agency [PMISPA] (2015), the inflow of Foreign Direct Investment [FDI] has reached 12.5 BUSD in 2014 and the amount of countries with foreign capital is constantly growing. While the biggest Turkey’s assets are mainly related to soil and population, a set of political reforms targeted to support the investment, the close possibility to join the EU contribute largely to growing interest of foreign investors. On the other hand, doing business in Turkey requires 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...
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...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 in China and Brazil (World Bank, 2014: 4). Nevertheless, Demirbag et al (2007: 275) indicate that Turkey complex bureaucratic processes is a barriers for foreign firms;...
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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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...1.Brief Background of Turkey Turkey, officially the Republic of Turkey is a contiguous coasttocoast country, located mostly on Anatolia Western Asia, and on East Thrace in Southeastern Europe. Turkey's location at the crossroads of Europe and Asia makes it a country of significant geostrategic importance. Turkey's largely freemarket economy is increasingly driven by its industry and service sectors, although it traditional agriculture sector still accounts for about 25% of employment. Oil began to flow through th BakuTbilisiCeyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Tourism in Turkey has experienced rapid growth in the last twenty years, an makes up an important part of the economy. 2. PESTE Factors 2.1 Political (P) Stability of Government Turkey’s current government (Justice and Development Party), Turkish Adalet ve Kalkınma Partisi (AKP), als called AK Party or Turkish AK Parti, political party that came to power in Turkey in the general elections of 2002 Prime minister of the party is Recep Tayyip Erdoğan since 2002. In the most recent election, Turkey's 17th general election was held on 12 June 2011 to elect 550 new members of Grand National Assembly. Justice and Development Party garnered 21,399,082 votes, which was almost half of the total votes and ...
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...transportation system in Turkey is a road traffic both in passenger and cargo. Turkey have a government managed train system called TCDD (Türkiye Cumhuriyeti Devlet Demiryolları) which has 10,940km long railroad. However, there are few trains on that line so that it is exceedingly not convenient. Also, stations and other facilities are not well developed and becoming superannuated. In 2004, TCDD introduced new train vehicle which is able to run as maximum speed of 160km/h. Though, that train causes a derailment accident and 39 people dead because of an insufficient railroad equipment. This accident triggered to decrease a nation’s confidence at train system and the number of passengers of railroad also decreased. Turkish government most focus on road maintenance and improvement. Domestic road network has 63,220km long (in 2004). Not only the cargo transportation but also the passenger transportation is mainly ran by buses bus terminal called “Otogal” and there are many bus company exists and provide many tracks as very often frequency of service. In Turkey, because of the nation’s compensation of employees are still low, and the very high percentage of taxes in gasoline, diffusion rate of car is low. In agricultural area, people uses tractor or horse to transport people and crops. In 2013 there were 98 airports in Turkey, including 22 international airports. In 2014, Istanbul Atatürk Airport is the 13th busiest airport in the world, serving 31,833,324 passengers. The new international...
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...effectively with China is a must for Turkey. Several factors have affected relations between the countries: first, a paradigm shift in the approach to bilateral economic ties; second, a sense of mutual understanding between the two governments on the Uighur issue; and third, increasing acquaintance and cultural affinity between the Turkish and Chinese people. But there is a further potential factor: the two countries’ involvement in the Middle East In February when Xi Jinping, vice president of the People’s Republic of China, visited Turkey, the grand meeting hall of one of İstanbul’s largest convention centers witnessed an historic moment. Xi entered the hall to great fanfare, and responded to a standing ovation from literally hundreds of Turkish business executives with the announcement of several trade and investment projects intended to strengthen economic linkages between Turkey and China. Xi’s visit was important not only because he is the presumptive heir to President Hu Jintao, and hence the person who is likely to lead China over the coming 10 years, but also because his visit produced concrete results, such as 28 business agreements with total worth of $1.4 billion signed in a single day, cementing the strategic partnership agreement inked between the two countries back in 2010, and providing clues to the path along which Turkish-Chinese relations are likely to progress under Xi’s tenure. For Turkey, engaging more effectively with the new global economic powerhouse is not...
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...Like many Eurasian states, Turkey struggles to find a balance between new capitalistic markets consuming its larger cities and the agricultural sector of its economy that still accounts for 25.5 percent of employment. Its influence in the global market has been slim; however, technology and automobile markets are growing significantly and have helped raise real GDP by over five percent per year. Turkey’s main priority is to maintain the stability of growth in GDP and reduction in inflation (“Turkey”). Since the 1980s, Turkey has struggled to reform its economic policy through the ups and downs of military coupes and competing government parties. Turgut Ozal, finance minister at the time, is responsible for Turkey’s economic reforms. Ozal focused on the reliance of market forces; he devalued the Turkish lira, reduced exchange rates, increased incentives for exports, increased the price of goods produced by public sector companies, and abolished price controls (Rivlin, 212). The policy was successful, driving down inflation and increasing GDP. By the mid-eighties, however, inflation rates skyrocketed due to outside spending that increased national debt, an increase in unemployment rates, and unstable trade agreements (213). Throughout the next decade, the rollercoaster of inflation and increased debt continued to plague Turkey’s economy. A 1989 reform allowed capital movements in and out of the country and high interest rates encouraged investment into the country, keeping the...
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...Course: Academic writing Semester: Fall 2014 Academic Paper EU EXPANSION: Accession of Turkey and its potential impact on the atmosphere within the EU Rauf Asadullayev Instructor: Christopher Weilage Munich, Germany, 2014 Table of contents 1.Introduction………………………………………….…………………………3 2. The Association agreement…………………………………………….……..4 3. The Ankara Agreement………………….…………………………………...6 4. Customs Union………………………………………………………………..7 5. Turkish government and the accession of Cyprus in the EU………………8 5.1 Turkey’s short term economic effect on the EU…………………………..9 5.2 Turkey’s territorial advantages for the EU……………………………….10 5.3 Religion and culture in Turkey…………………………………………….11 5.4 Food in Turkey and its safety- Security and the EU……...………………12 6. Impact of EU’s democratic standards to Turkey…………………………..13 7. Conclusion…………………………………………………………………….16 Index of Abbreviations BTC- Baku Tbilisi Ceyhan EEC- European Economic Community EU-European Union EC- European Council EP- European Parliament FAO- Food and agriculture organization SEES-Southeastern European states Introduction Europe - the cradle of human civilization, boiling pot full of many various nationalities, cultures and languages. Geographical borders within and outside of the Europe have changed every time when a new Empires began to flourish. Even now, in the 21st century borders of EU are not defined clearly. Should the Borders be...
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...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, long term or short term. Direct investments include...
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...campaign about investing in turkey, some may ask why an individual may have the notion to invest in something like turkey even though the holidays are just around the corner. Well relax, it has nothing to do with the delicious bird that we all love, it all about the country of Turkey. The ad shows a few brief images of what looks to be like a thriving economy and a few industrial images and goes on to simply say, invest in Turkey. Although I haven’t put much thought into investing in another country, and probably never would have, I felt that this this article would be a good opportunity to glance into what exactly investing in other countries entails. So, first off, how does one invest in turkey and why would someone want to? Well, according to the campaign turkey is one of the fastest growing economies in the world, It is ranked 16th of all countries in GDP purchasing power parity, Grew by 7.4 percent in 2005, received 18.2 billion in revenues from tourism in 2005, it is the founding member of the Orgnization for Economic Co-operation and Development, and much more. Some of the country numbers look good but, rather than investing in the country, you would actually be investing in a compilation of stocks of companies that are based in the country of Turkey. Most of the companies trade on the pink sheets, but a couple trade on the New York Stock Exchange. So if turkey is calming to do so well, what about other Countries in the world, certainly Turkey cant be the only economy...
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...International Marketing: Entering New Markets By: Div B TURKEY WHY CIPLA IN TURKEY Attractive Emerging Market Alignment with Cipla’s Corporate Vision Government Initiative (Vision 2023) Geo-strategic importance Disease Prevalence • Respiratory diseases- 3rd major cause of death • Cancer- 2nd major cause of death • 60% adult men and 40% adult women smoke in Turkey • HIV- Officially 1/2 in Istanbul Wholesale Retail • More than 500 wholesale companies, but only about 200 of them are active •More than 24,000 pharmacies • Selçuk Ecza and Hedef Alliance>90% of wholesale market share •Istanbulmaximum pharmacies •Mark ups are regulated HOW TO ENTER TURKEY Turkey Government’s Vision 2023 HOW TO ENTER TURKEY Turkey Government’s Vision 2023 In “Vision 2023” scenario for Turkey’s pharmaceutical industry, the ratio of locally manufactured products to market size will increase and reach USD 16 billion by 2023. HOW TO ENTER TURKEY Turkey Government’s Vision 2023 In “Vision 2023” scenario, clinical research investments are expected to reach USD 1.1 billion and total R&D investment by pharmaceutical industry is expected to reach USD 1.7 billion. HOW TO ENTER TURKEY Turkey Government’s Vision 2023 Turkey’s pharma export rate is expected to remain stable under current policies, but it could reach USD 8.1 billion as a result of increased production and clinical trial capacity in the “Vision...
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