Turkey-A Study On Understanding The Business Environment

8/14/2019 Turkey-A Study On Understanding The Business Environment

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Turkey-A

StudyO

nUnderstanding

The

Business

Environ

ment

RajivGandhiInstituteOfPetroleumT

echnol

ogyMBA2008-10

By:By:By:

By:---- Abh

imanyuKr.Singh

Abh

imanyuKr.Sing

h

Abh

imanyuKr.Singh

Abh

imanyuKr.Sing

h

SauravAnand

SauravAnand

SauravAnand

SauravAnand

Facu

lty

Facu

lty

Facu

lty

Facu

lty----

Prof.PinakiDasgupta

Prof.PinakiDasgupta

Prof.PinakiDasgupta

Prof.PinakiDasgupta


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TurkeyEvolution


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About

Turkey

TotalPopulation:73,885,055

Annualgrowth

rate:1.2%

Density:96inhabitant/km


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ogyMBA2008-10

ranpopua

on:

.

Populationofm

aincitiesincludingsuburbs:Istanbul(12,500,000);Ankara

(3,925,000);Izm

ir(2,825,000);Bu

rsa(1,580,000);Adana(1,400,000).

EthnicOrigins:

Therearemorethan70ethnicgroup

sinTurkey.75%Tu

rks,

20%Kurds,3-4%Circassians,and

alsoArmenians,G

reeks,Georgians,

Arabs,Europea

nsofThethnicorig

insandtheBalkan

s,Russians...

(1-2%

)


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Ottoman


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About

Turkey

OfficialLanguage:Turkish.

Otherlanguage

sspoken:ThereareseveralotherAltaiclanguagesasw

ell

asminoritiessp

eakingKurdish,Greek,Armenian,Bu

lgarian,Albanianor

Circassian.EnlishFrenchorGermanarelanuaes

usedfairlfreue

ntl


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ogyMBA2008-10

intrade.

Businesslanguage:Englishisvery

commonlyusedin

business.

Religion:Muslims96%.Others:Je

ws,Orthodox,CatholicsandProtesta

nts.

Literacyrate:87.4%


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TypeofState:

Turkeyisarepublicbasedonaparliamentary

democracy.

Turkeyisa"quasi-democratic"

Stateinfulltransition.Thearmy

About

Turkey


echnol

ogyMBA2008-10

,

,

country.

Typeofecono

my:Upper-midd

le-incomeecono

my,OECDmemb

er,

EmergingFina

ncialMarket.

HDI:0,798/1


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E

conomic

Indicato

rs


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E

conomic

Indicato

rs


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M

ainsecto

rsofindu

stry

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Restartyourcomputer,andthenopenthefileagain.

Iftheredxstillappears,youm

ayhavetodeletetheimageandtheninsertitagain.


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ogyMBA2008-10


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Foreigntrad

einfigures


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M

ainpartn

ercountries


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Mainp

roducts


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Mainp

roducts


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FDIinfigures


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Inve

sting

In


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Investing

inTurke

y

Foreigninvestorssubstantialandgro

wingexposu

re

inTurkey-A

sofNovemb

er2007,non

-residentbon

d

holdinsam

ountedtoYTL35.7

billion


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ogyMBA2008-10

ReformPr

ogramfortheImprovementofthe

InvestmentClimateofTurkeyisunderway


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InvestinginTurkey

TheGovern

mentrecentlyreducedthecorporate

incometax

from30to20percentand

implemente

d

taxreformstoim

rovecollectionefficienca

nd


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ogyMBA2008-10

reducefirm

scomplianc

ecosts

Exitingthe

markettakes

longerandyieldslower

recoveryra

testhaninco

mparatorcountries.


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Turkish

laborregulationsa

re

inflexible.

Payrolltaxesand

compulsoryno

n-wagecosts

arehigh,and

theemploym

ent

protectionlegislationisrestrict

ive.

Investing

inTurke

y


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ogyMBA2008-10

Governments

Developme

nt

Plan-Training

and

skill

development

Trainingresu

ltsencouragin

gbutlackof

analyticalskillsin

workersdueto

lackofenrolm

entinmathematicsandnatural

sciences


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PastBankGroupAs

sistance

Turkeyisthelargestborrowe

rintheEurope

and

CentralAsiaRegion

Thirdlargest

WorldBankborrowerinterms

ofnew

Inve

stinginTurkey


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ogyMBA2008-10

commitmentso

foverUS$1.5b

illionduringthelastthree

years.

Theoriginal,

FY04-06CASen

visagedalow-case

scenariowitha

lendingvolume

ofuptoUS$1.3billion

andahigh-case

scenariowitha

lendingprogra

mof

US$4.5

billion


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AstrongInternationalFinanceCorpor

ation(IFC)program

contributedtotheachievementoftheC

ASobjectives

InvestinginTurkey


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ogyMBA2008-10

MultilateralInvestmentGuaranteeAg

ency(MIGA)

has

alsobeenactiveinTurkey.

Ithasprovide

dguaranteesboth

forinvestmen

tsinTurkeya

ndtoTurkish

investorsinv

esting

abroad


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Governme

ntmeasures

tomotivateorrestrictFD

I

Since2003,in

vestorsarenolongerobligedtoa

cquireaminimum

interest.

Nevertheless,

thegovernment

encouragesinve

stmentsinthefo

rm


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ItfavorsinvestmentsintheHighTech,textiles,

services(health,

education,tra

nsport),telecom

munications,shipbuilding,

electronicsan

dbiotechnologie

ssectors

Export-orient

edprojectsarea

lsopromoted.

Decreen24810of9July2002definespublica

idforinvestmen

t


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BilateralInve

stmentCon

ventionsSig

nedbyTurkey

Turkeyhassignedbilateral

conventionswithnearly80

countries

IntheMedi

terraneanbasin,Turkeyhassignedbilateral


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ogyMBA2008-10

conventions

withAlgeria,E

gypt,Israel,Sp

ain,Greece,

Lebanon,Morocco,PortugalandTunisia

convention

s-Theydefine

theframework

ofprotectionfor

foreigninvestmentinTurke

yforeachofthesignatory

countries


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StrategyforBusiness-India

&Turkey

CurrentStatus

Major

tradearea


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Strengt

Weakness

Opportunities

Recom

mendations


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Curren

tStatus

Diplomatic

relationsbetw

eenIndiaandTurkeywas

established

in1948

Indiahasan

embassyinA

nkaraandac

onsulate


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ogyMBA2008-10

generalinIstanbul

DuetoTurk

eyskeystrategicsupportforIndia's

chronologic

alenemy,Pak

istan,relation

sbetweenthe

twocountrieshavesome

timesbeenco

ldlystrained


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Curren

tStatus

Turkey-India

tradehasincreasedbyover300percentin

thelastfive

yearsandthereispotentialfo

rsignificant

upsurgewithFreeTradeAg

reement(FTA)

betweenthet

wo


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ogyMBA2008-10

countriesat

advancedstageofnegotiationsUpfrom

80

0

millionto$2

.6billion

AlreadyIndianinfrastructurecompanyGM

Rhas

successfully

takenupdevelopmentofam

ajorairportin

Turkey


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Curren

tStatus

For2008-2009Indiaexpo

rtedUS$1.38

billionworth

of

goodstoTu

rkey,IndiaimportedUS$1.44billion

Indianexpo

rtstoTurkey-cotton,yarn,machinery,


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ogyMBA2008-10

drugs,transportequipme

ntandchemicals

Indiamainlyimportsmac

hinery,ironandsteel,ores

andmetals

crap,andino

rganicandorganicchemica

ls

fromTurkey


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Cotton

Iron&Steel

Plastics

MajorTradeArea


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OrgaincFiber

Chemicals

TradeBasket


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Strong

points

Ageographical

strategiclocation

Awelldevelop

edindustrialbasin

AcountrywhosecallingistojointheEUclubby2015-2020


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Arapidlydevelopingconsumerm

iddleclass

Asustainedgrowthinfluencedbyamodernanddynamicprivatesector

Astrongincrea

seinproductivityinrecentyears

AlegalframeworkclosetoEuropeanstandardsand

favorableto

investment-CU,OECD


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Weak

points

Theslowingd

ownofeconomicandpoliticalreformsobservedsince

theendof2005

Astrongdepe

ndenceonhydro

carbonimportsandonexports


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Adisturbingd

eficitofthebalanceofcurrentpa

ymentsInsufficient

andsometime

sobsolete,infrastructures

Earthquakeproneregion


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Oppor

tunities

Automobile

&Autocomponents-M&M(

FarmEqu

ipments),TATA

Infrastructu

re-GMR

ITES


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ogyMBA2008-10

-

Refinery&

Petrochmeicals-Ind

ianOil

Steel-Mittal

Leather

Jewelery

http://www.mahindratractorworld

.com/turkey.html

http://www.tata.com.tr/default.as

p


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Recomm

endations

Threemajo

rgaspipeline

swithCaspe

anSeaoilto

Mediterran

ean,Turkey-Greecelinksa

ndanotherlink

tothatservesBulariaRomaniaand

afewother


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ogyMBA2008-10

counties.M

ap

Promotion

tobiginfrastructureprojectin

transportationsector(BOT)

Developme

ntofports-ThroughJointVentures


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Recomm

endation

s

Mutualco

operation

inareas

Energy

Carpet


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ogyMBA2008-10

,

Ironand

steel,

IT

mining

gemsan

djewellery

amongo

thers

yes

Orga

nicchemicals

Auto

components


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ThankYou!


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www.fita

.org

www.foreigntrade.com

www.eiu

.com

www.wto

.org

Refer

ences


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Documents

Turkey-A Study On Understanding The Business Environment