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Turkey Peste

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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 won a total of 327 seats. During his first few years of being a prime minister, he reformed Turkey's dictatorial rules and regulations and worked hard to make Turkey a candidate country for the EU. Thus, making Turkey one of the safest country in th region. Furthermore, he build a broad coalition with social group from different walks of life which in turn brough political stability in the country. However, Turkey is currently not as stable as it was Mr Erdogan's ministers ar involved in corruption and are taking bribes from businessmans. In addition, the government kept a distance from EU, thinking that the EU reforms are obstacles. Hence, negatively affected the political stability in the country. Turkey & Jordan Political Stability and Absence of Violence/Terrorism, Rank (Percentile) Turkey Jordan 2008 18.18 31.1 2009 15.64 32.23 2010 18.4 34.43 2011 18.87 29.72 2012 13.27 29.86

Attractiveness: Turkey’s political party and prime minister has remained unchanged for the past 12 years. This shows that the citizens of Turkey has confidence in their own government. This also shows that the relationsh between the citizens and government is very stable. Having a stable relationship between the country and th citizens will attract more investors and business for Turkey. Risk: Recently, Turkey’s government is involved in minor corruption and taking bribes from businessmans. Thi could result in an unfair treatment and instability for new investors and business in Turkey. They are also n cooperative with EU ever since the government became corrupted. Social Stability Just like the other countries, Turkey is also facing terrorist attacks. There were many bombing incidents in the past years. ‘The 2013 Reyhanli bombing’ that happened on 11 May 2013, killed 52 people and 146 were injured. It happened because of the tensions with the Syrians, blaming the government for interfering the Syria domesti affairs that risk Turkish lives. Turkey has seen a number of protests against the government since last year. On May 1st 2014, thousands o demonstrators arrived on the streets of Istanbul for May Day rallies. They were protesting against the governmen for a corruption scandal and for imposing a creeping authoritarianism in Turkey. More than 140 people were
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arrested, and 90 were injured. This could be the largest and worst mass demonstration since last year June as this protest has been going on since last year. Turkey’s overall crime rate remains low as a result of successful policing and operations carried out by law enforcement. It is also due to the rise in the education level of the police, information services and the installatio of Mobile Electronic Systems Integration (MOBESE) cameras in major cities. Public services were provided by the police and citizens have been informed about various crimes and criminal activity. Hence, Turkey is still safe because of the competency of the police department in the country and the cooperation of the citizens. Attractiveness: However, this protest did not interrupt the tourism industry. Figures released by Culture an Tourism ministry revealed that the number of tourists did not decrease even though the protest did subdue th boost in visitors. Turkey’s overall crime rates remains low as it is still one of the safest countries because of the continuous improvement of public services and administrative functions. It is a positive factor for the foreign investors. Risk: Explosive threats has caused many problems and disturbances for the government. It also posed as a danger to the foreign investors. Having protests in the country causes economic instability and social unrests. A people are involved in the protest, their work schedule, the business efficiency and peace in the country will b affected. This will then discourage foreign investors from entering into Turkey. Relationship between governments Turkey­Singapore relations have started in the 19th century where they shared similar opinions on issues such a interfaith harmony, dialogue among civilizations, and resolving international issues through peaceful means Turkey and Singapore also sides mutually exchanged opinions on Southeast Asian and the Middle Eastern Issues. A memorandum of understanding between the two countries on the fight against terrorism was also signed. Total trade volume between Turkey and Singapore has maintained a steady level of 1 billion USD. On 9th January 2014, Prime Minister Erdoğan and Prime Minister Lee decided to begin negotiations for Free Trade Agreement between the two countries in 2014. At present, there are 49 Singaporean companies operating in Turkey. Germany is Turkey’s number one trading partner, with bilateral trade reaching up to 35 billion dollars. In addition Germany ranks fourth in major importing countries in 2014. Their relationship has grown much stronger over th decades, celebrating 250th anniversary of their diplomatic relations in 2014 which shows the positive state of biblical relations in both countries. Both governments often visit each other, which further prove their close ties. Turkey’s borders are shared with eight countries; Bulgaria, Greece, Georgia, Armenia, Azerbaijan (exclave o Nakhichevan), Iraq, Iran and Syria. In spite of having disputes with countries like Iran, Syria and Greece, Turkey still in diplomatic relation with other countries. On 4th may 2013, Turkey and Greece vowed to work towards resolving long­standing differences and disputes. Relations have improved with Greece now the fifth larges investor in Turkey. Turkish investment in Greece has also increased. Attractiveness: Turkey has always maintained a good relationships with other countries like Singapore and Germany. This allows trading in Turkey to be carried out effectively and efficiently. It also minimize transfer ris within countries. Furthermore, it promotes peace among countries and encourage foreign investments. With tha it will lead to economic growth. Participation in International Organisation Turkey is involve in 25 International Organisation. One of which is UN (United Nation). Turkey was a foundin member of the UN in 1945. A total of 14 UN organisations are assisting Turkey as it tackles its remaining development challenges, maintaining international peace and security, promoting sustainable development, an securing human rights. Turkey has also been a member of WTO(World Trade Organisation) since 26 March 1995. WTO is to help international trade flow ‘smoothly, freely, fairly and predictably.Free trade encourage development and economic reform.

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Attractiveness: Since Turkey is part of UN, this will mean that, there is a very low chance of having an outbreak war in Turkey. Investors and business will be drawn to enter a peaceful and stable country. By joining the WT also shows that it will be able to help investors and business to settle trade disputes peacefully. Legal Environment As of 2013, Turkey was rank 69 out of 189 countries for having the ease of doing business. Turkey Corruption Perception Index was ranked 53 out of 177 countries with a score of 53 out of 100, as compared to its neighbouring country, Jordan, who was ranked 66 out of 177 and a score of only 45 out of 100.Turkey has als scored 5.5 for Intellectual Property Rights Index and was ranked 9 of 24 in Middle east. It scored 4.6 for Lega and Political Environment, and was ranked 67 of 130 globally, and 13 of 24 in its region. Compared to 2012, Turkey’s Legal and Political Environment has improved by 0.1 points, this is due to its improvements in the Control of Corruption and Judicial Independence score. Physical Property Rights has also improved by 0.2 points up to a score of 6.5, the improvements are due to a 0.5 point increase in Protection of Physical and a 0.3 point increase in Access to Loans.The component Intellectual Property Rights also increased by 0.3 points from 2012 to 2013. This increase is due to a 0.8 point increase in the item Protection of Intellectual Property Rights. This shows that there is still some corruption in Turkey, but they are slowly improving in its Legal Environmen sectors. Attractiveness: Since 2012, Turkey is making improvements in its legal environment sectors. Also, it was ranked in the top 30% in the Corruption Perception Index. This means that investors will be able to re­consider to inves or start a business in Turkey. 2.2 Economic (E) Potential as Consumer Market/ Production Base Market Size

Population: According to World Bank, Turkey is a developing country and has a total population of 76.668 million in 2014. I has an increasing population with figures 71.85 million, 73.058 million, 73.997 million and 75.62 million in 2010, 2011, 2012 and 2013 respectively (refer to fig 2.1).The increasing population is due to longer life expectancy and the low death rate.

Attractiveness: Having a large and increasing population would be attractive to foreign investors as they are able to enter a large market and earn more profits. Being a developing country indicates that the population’s literacy rate is high, with a 95.3% literacy rate in Turkey, this will mean that the workers in the country are more skilled. More factories and companies will be attracted to start up their business in Turkey.

Gross Domestic Product (GDP): GDP represents the total market value of all goods and services produced by resources within the country Turkey has a GDP of US$730.3 billion in 2009 and decreased to US$614.6 billion in 2010. However it increased to US$731.1 billion in 2011 to US$774.8 billion in 2012 and US$789.3 billion in 2013. The drop in GDP in 2010 is due to the global crisis in 2008­2009. (refer to fig 2.2)

Attractiveness: Since GDP is rising, it means that the economy is good and expanding.There will be a higher demand of goods and services which means that there will also be an increase in production and thus generate more profits that can be used as investments and infrastructure.

Gross Domestic Product Per Capita (GDP per capita): Gross domestic product is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living.

Turkey’s GDP per capita increased steadily from 2009 to 2012 with numbers US$8626, US$10,135, US$10,605 and US$10,666 respectively. (refer to fig 2.3)

World Bank also indicates that Turkey has a positive upward shift to the upper middle income economy. This is possible due to the country’s high standard of living and high economic growth rate.
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Attractiveness: A higher GDP per capita means that the country’s standard of living is high. With better standard of living, the people living in the country will have higher literacy rate, life expectancy, and are employed. This w mean that the people in the country have a higher purchasing power as most of them have incomes and this w attract foreign investors to set up their business in Turkey since Turkey has a large market size. Although in 200 and 2009 there is a drop in the country’s GDP per capita due to global financial crisis, Turkey managed to increase its GDP per capita from US$8626 in 2009 to US$10135 in 2010 shows that there is economic potential in Turkey because of its fast recovery. Economic Stability Economic Growth

Real GDP Growth: Turkey reported GDP growth percentage of 9.2%, 8.8%, 2.2%, 1.9% in 2010, 2011, 2012, 2013 respectively and estimated 3.0% and 2.6% in 2014 and 2015. The high GDP growth in 2010 and 2011 was largely driven by debt­fuelled private consumption and property investment, which included awarding big contracts to fast­growing and highly leveraged Turkish constructio firms. Turkey’s economic growth slowed sharply to 2.2% in 2012 as weak domestic demand and spillover from the European debt crisis took its toll after two years of rapid expansion that rivaled China.

Attractiveness:"Inflows from abroad are slowing down and we know that economic growth isn't yet accelerating as quickly as desired," said Gizem Oztok Altinsac, an economist at Garanti Securities in Istanbul. "It is possible that we will encounter an environment that initially allows for a more rapid pace of credit growth." The countr shows potential economic growth as there is still slight growth throughout the years despite the European deb crisis.

Inflation: Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.

Turkey has a fluctuating inflation rate 8.6% in 2010, then decreasing to 6.5% in 2011 and increased to 8.9% in 2012 and decreased by 7.5% in 2013 and estimated to increase to 8.35% in 2014. According to an article dated 3 Jan 2014 from Hurriye daily news which is a leading news source for Turkey, it reported that the weakness of the lira and higher­than­expected global oil prices have driven inflation higher in recent months.

Risk: Turkey has a high inflation rate as it is more than 5% and results in erosion of consumers’ purchasing power as the general price level of goods and services increases and companies’ have to increase their prices and loses competition by doing so to meet increased production costs and wages for its workers. Companies that wants to invest in Turkey will have to reconsider before entering its market. Attractiveness: The government is deciding to take with tight monetary policy on the increasing inflation According to an article on Yahoo dated 30 April 2014, “Erdem Basci also said that the bank might lower the interest rates, without providing any time frame.” Hence businesses can reconsider to invest in Turkey. Turkey’s Balance of Payment (BOP)

Current Account Turkey major exports are textiles and clothing, automotive, iron and steel, white goods and chemicals and pharmaceuticals .Turkey current account constantly declining from 2009 to 2011 with figures of ­12.124 million,­45.42 million,­75.081 million respectively. This is due to the global crisis in 2008­2009 as it affects a lot of countries economy and trading. However, turkey starts to recover in 2010 to 2011. The declining figures is due to the decreasing number if investment income due to the volatile economic conditions. From 2012 to 2013, turkey current account drop from ­48.497 million to ­65.061 million. This is due to recession that leads to increasing interest rate. Which leads to a lower investment income. Hence resulted in a deficit of Turkey curren account. Even though Turkey is facing with an economy crisis in its country, its export of goods and service
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increases along the years. Turkey's location is another selling­point. Its role as a trading post between east and west has been a lure for businessfolk since before the Genoese built the Galata Tower. This may also be due to its variety of exports that makes its survival during the rough times of its economy. Capital Account The global crisis in 2009 affected Turkey’s loans which resulted in increasing loans and declining capital accoun in 2009 to 2010. Turkey capital account dropped from ­43 million to ­51 million as it loan interest increase with down local currency. Its loans increases from ­282 million to ­428 million. Hence , there is an increasing loans which affected its capital account. However, with economic recovery in 2010 to 2011, Turkey capital accoun starts to increase from ­51 million to ­25 million. This may be due to the increasing investments to the country Turkey capital account starts to decrease again in 2012 to 2013 due to recession. Its capital account dropped from ­52 million to ­92 million. Thus resulting a deficit in Turkey capital account. Balance of Payment Turkey has a deficit in its overall balance of payment from 2009 to 2013. the figures are ­52.046 million, ­83.108 million, ­90.946 million, ­99.438 million and ­154.819 million respectively. Hence, its change in reserves are 52.046 million,83.108 million, 90.946 million, 99.438 million and 154.819 million.This shows that there is a reduction in Turkey reserves and addition to its foreign liabilities. Turkey increasing balance of payment maybe due to the deficit of current account and capital account. As its Turkey economy is fragile to economic crisis Turkey tends to make more loans than income. This results in Turkey having a deficit in its capital account an current account. Which eventually affected its Balance of Payment. 2.3 Socio­Cultural (S). Sociocultural can be defined as an integrated system adopted by people in a society with similar patterns and behavior. By understanding Turkish culture and abiding by the appropriate etiquette, you can gain respect from the people of Turkey. Religion Being a Muslim country, religion plays a major role in people’s everyday lives and it also shapes their values an ideals. People in Turkey is very religious as they integrate it with political and social issues. They would apply their religious law on its own court to determine whether the person is guilty. Language Around 70% of the people there speaks Turkish. Whereas as for the international language – English, is known by only 17% of the total population in Turkey. This means that that there will be language barrier between Singaporeans and Turkey people. Education The education system is quite similar with Singapore as both countries have pre­primary level, primary, secondary and higher secondary which is similar to our polytechnic or junior college level. Unlike schools in Singapore, everyone in Turkey must take religious study as a compulsory subject as the country is very religiou Value, attitude, manners and custom.

In Turkey, at the start of the meeting, it is expected for you to greet your Turkish counterpart with a firm handshake. Als when attending a business meeting, we must always greet the oldest person first; Turks have a great respect for the elderly.Turkish people tends to stand close to you during a conversation, if they do not do so, that means they are not interested in you or don’t like you.

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Hofstede’s 5 Cultural Dimensions ­ Power distance Singapore and Turkey both have a high level of power distance which means that both countries’ people

understand their position and accept inequalities amongst the countries. Everything in the country is based on rankings and those at lower rankings will have to listen to the people at higher ranks. Respect is also expected by boss, the relationship is formal. Hofstede’s 5 Cultural Dimensions ­ Individualism vs Collectivism Both Singapore and Turkey is a collectivistic society that means that people in those countries focuses more on

teamwork and team achievements instead of thinking about self­achievements and being self­centered. The people belongs to a group like example an organization and they look after each other and help each other ou when there is problem. Like for example in a company when one department is lacking in a specific type of skill

another department can help out and assist them. Hofstede’s 5 Cultural Dimensions ­ Masculinity vs femininity Both Turkey and Singapore are on the feminine side of the scale. This means that the job roles between man and woman are not clearly defined and their job will overlap with each other. This also means that woman can do wha man are capable of doing vice versa. Like example women can also be promoted to CEO unlike the traditional mindset which people always think that the CEOs are always the man’s job and woman should be working as secretary jobs. A more feminine country also means that they focus a lot on quality of life like for exampl enjoying life and get the most out of everything. In both countries, the people are hard workers so they tend award themselves with a treat like going to a vacation. Hofstede’s 5 Cultural Dimensions ­ Uncertainty avoidance Turkey have high uncertainty avoidance level whereas Singapore have low level of uncertainty avoidance. Th means that in Turkey, there is a huge need for laws and rules and to minimize anxiety, Turkish make use of a lo religious rituals to ease tensions among people to let them have assurance in things they do. In Singapore case they have a low level of uncertainty avoidance which means they have low tolerance for risks and uncertaintie They do not dare to go against the rules because Singapore is known as a ‘fine’ country which means if you do anything wrong, you will be fine. So Singaporeans are cautious of that fact and not do anything bad. Hofstede’s 5 Cultural Dimensions ­ Long Term Orientation Both Turkey and Singapore have long term orientation as they put a lot of emphasis on giving ‘face’, values and respect for elders and traditions. They focus on relationship building as both countries focuses on values, they d not want to work with people who doesn’t respect others and are arrogant people. They also look forward to long term business relationship and building good relationship with one another ensures that business will be smooth sailing. So in conclusion, understanding our business partner’s country culture is a very crucial part in doing business 2.4 Technology (T) The concept of Technology in PESTE refers to any equipment, technique, process, equipment, tool infrastructure, information technology, capital equipment know­how and skill level of workforce. The level technology of a country,whether it is low­tech or high­tech, determines if the level of technology can support th business operations in cost and efficiency. Infrastructure In the recent years,Turkey has been investing a lot of resources to upgrade its infrastructure. Currently, a ne airport is in the midst of completion in north Istanbul and costs a reported amount of €22 billion. At the same time a bridge costing $3 billion is being built across the Bosphorus strait and a new port complex worth around $700 million is being constructed in the Galata region.
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As quoted by Melih Nalcioglu, Frost & Sullivan’s research manager, “Rapid urbanisation will make Turkey an attractive market for consumer products, automobiles and white goods. The growth of Turkey’s GDP and pe capita GDP, together with other Mega Trends, such as infrastructure investment and a swelling middle class, wi bring Turkey to the same level as developed countries in mobility, consumption habits, social life and urban development.” Technology Readiness According to the Global Competitiveness Report, Turkey has a score of 3.56 and ranks 52nd overall in technological readiness. This is lower than the EU25 average score of 4.74.but has slightly improved from las year of 3.38. Turkey’s Information and communication technologies (ICT) infrastructure and penetration rates are still very low Currently, usage of personal computers ranks at 72nd, Internet at 56th and cellular telephones at 52nd. These ar all considered fairly low according to European standards, even though the ranks has improved from last year. 2.5 Environment (E) Environment in PESTE refers to any climate changes, natural disasters or even pollution level in a country. Thes impacts many sectors as the effects from changes in the environment are unavoidable and cannot be controlled Natural Resources

Recently, high­quality oil was discovered in the Bismil town in south eastern, western Turkey. It was found at a depth o 2,450 meters, has a gravity ranking of 41.9, estimated to fill as many as 10 million barrels and the quality is said to b close to the oil reserves in Saudi Arabia.

Floods Floods causes great loss in terms of human and economic costs. According to EU data, every year at least 80 million euros in damage were caused by floods. From 2002 and 2012, there were a total of 484 floods that resulted in the death of 229 people in Turkey. Landslides Landslides are common in Turkey and occur at least once every year. In 2013, there were two landslides tha happened in January that killed seven, injured three with one person still missing and in July that killed five an injured twelve. Government Measures In 2012,Turkey started a two­year EU funded project with French and Romanian specialist that will work togethe with Turkey’s Ministry of Forestry and Water Affairs. The objective is to reduce the number of deaths and materia damage caused by floods by working with Turkey’s technical and institutional capacity. The foreign specialist wi use their experience of floods in their home countries to help Turkey be more prepared for future floods. Risk: Due to Turkey’s climate, they have heavy rain that causes Turkey to be prone to floods and landslides.Thi means that there is a high possibility that these floods and landslides will damage our property thus incurring unnecessary cost to repair the damages. 3. Conclusion Even though the stability in Turkey is a little shaken right now due to government’s recent corruption activities, turkey has been a stable and safe country for the past few years. Furthermore ,the corruption perception index i turkey has improved the past few years and in fact their ranking has surpassed Jordan. With overall crime rates remains low and good relationship between countries, Turkey is worth the investment. For Economic factor, there is a huge population of about 76 million people in Turkey. An increasing GDP from 2010 to 2013 means that the economy is good and expanding. Turkey’s GDP growth percentage also shows economic potential too. With a large population and good GDP and GDP growth percentage it will attract more foreign investors as there is a huge market size and increasing spending power, which will lead to greater
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revenue. Increasing GDP per capita brings a positive upward shift to the upper middle income economy. However increasing inflation lowers people’s spending power, companies’ have to increase their prices and loses competition to meet increased production costs and wages for its workers.With an increasing number of export despite the economic crisis, Turkey exports is one of the reason for its survival. Given its strategic geographic location Turkey offers excellent access to markets in Europe (including preferential Customs Union access to the European Union), the Caucasus, Central Asia and the Middle East. However its increasing BOP deficit will be a challlenge for the country. For technology factor, there is great potential for Turkey as they are constantly improving their technology industry. However, it will take a many years until turkey will be developed enough to compete with other countrie like china in the business sector. For environment factor, there are not that many natural disasters and the government is working on reducing the damage from these disasters. There are good natural oil resources and if Turkey is able to obtain and sell it wel they can use that revenue to further develop their country. For social factor, in cultural terms, they are very similar to Singapore. We can understand their traditions and know why they do certain type of things making communication easier. With good communication, business can be discussed easier and there would not be any misunderstandings between the two countries. So in conclusion, after further discussion we have decided to invest in the oil industry in Turkey as recently they have discovered some new oil fields. References 1. http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2012/10/09/feature­04 2. http://beforeitsnews.com/weather/2013/07/turkey­landslide­5­killed­12­injured­2441208.html 3. http://news.xinhuanet.com/english/world/2013­01/28/c_132134079.htm 4. http://www.worldfinance.com/infrastructure­investment/government­policy/turkey­aiming­for­huge­new­in structure­developments 5. http://www.todayszaman.com/columnist/emre­uslu_335815_the­future­of­political­stability­in­turkey.html 6. http://www.weforum.org/pdf/Global_Competitiveness_Reports/Turkey.pdf 7. http://www.transparency.org/country/#TUR 8. http://www.internationalpropertyrightsindex.org/profile?location=turkey 9. http://www.turkishweekly.net/columnist/3837/turkey­singapore­relations­a­stable­partnership.html 10. http://www.mfa.gov.tr/relations­between­turkey­and­singa=pore.en.mfa 11. www.mfa.gov.tr/relations­between­turkey­and­china.en.mfa 12. http://global.britannica.com/EBchecked/topic/1018363/Justice­and­Development­Party 13. http://en.wikipedia.org/wiki/Turkish_general_election,_2002 14. http://en.wikipedia.org/wiki/Turkish_general_election,_2011 15. http://www.turkishweekly.net/columnist/3837/turkey­singapore­relations­a­stable­partnership.html 16. http://www.hurriyetdailynews.com/trade­relations­between­germany­and­turkey­carry­great­potential­mer el.aspx?pageID=238&nID=41863&NewsCatID=351 17. http://www.euronews.com/2013/03/04/regional­rivals­talk­turkey­and­greece­as­relations­improve/ 18. http://mepc.org/journal/middle­east­policy­archives/turkeys­mediation­critical­reflections­field?print 19. http://www.hurriyetdailynews.com/trade­relations­between­germany­and­turkey­carry­great­potential­mer el.aspx?pageID=238&nID=41863&NewsCatID=351 20. http://www.euronews.com/2013/03/04/regional­rivals­talk­turkey­and­greece­as­relations­improve/ 21. http://mepc.org/journal/middle­east­policy­archives/turkeys­mediation­critical­reflections­field?print 22. http://www.un.org.tr/v3/vp/un­in­turkey/un­country­team.php?lang=EN#sthash.DTdMpSEN.dpuf 23. http://www.mfa.gov.tr/sub.en.mfa?7cafe2ef­78bd­4d88­b326­3916451364f3 24. http://www.unicankara.org.tr/v2/pages/un­system/un­system­in­turkey.php?lang=EN#.U4SnEvkaaao 25. http://www.mfa.gov.tr/the­united­nations­organization­and­turkey.en.mfa
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26. http://www.wto.org/english/thewto_e/countries_e/turkey_e.htm 27. http://www.centad.org/resources/100­layman­s­guide­to­wto/851­a­layman%E2%80%99s­guide­to­the­w o­principles­and­objectives.html 28. http://www.hurriyet.com.tr/english/finance/10542942.asp?gid=244 29. http://www.tcmb.gov.tr/odemedenge/menupdf.html 30.

3 years of political stability and corruption

Economic Population (Figure 2.1)

http://www.tradingeconomics.com/turkey/population GDP (Fig 2.2)

http://www.tradingeconomics.com/turkey/gdp GDP Per Capita (fig 2.3)

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http://data.worldbank.org/indicator/NY.GDP.PCAP.CD Economic Growth (fig 2.4)

http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

http://www.economist.com/news/finance­and­economics/21593496­political­turmoil­exposes­economic­malaise­ mask

"Inflows from abroad are slowing down and we know that economic growth isn't yet accelerating as quickly as desired," said Gizem Oztok Altinsac, an economist at Garanti Securities in Istanbul. "It is possible that we wil encounter an environment that initially allows for a more rapid pace of credit growth." http://online.wsj.com/news/articles/SB10001424127887323296504578396200677967468
Infation (fig 2.5)

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(http://www.inflation.eu/inflation­rates/turkey/historic­inflation/cpi­inflation­turkey­2014.aspx)

“Erdem Basci also said that the bank might lower the interest rates, without providing any time frame.” Hence businesses can reconsider to invest in Turkey. (http://au.news.yahoo.com/thewest/business/world/a/23100472/turkeys­central­bank­raises­inflation­target/)

Socio­cultural turkey business culture http://www.google.com.sg/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CCwQFjAA &url=http%3A%2F%2Fbusinessculture.org%2Fsouthern­europe%2Fbusiness­culture­in­turkey%2F&ei=eZqMU 4yeCcjn8AXw04LACQ&usg=AFQjCNEWmhAc9g­us67uXr1XKxH1Os0xTA&sig2=AMlwhvJpcDMbGf2nCZV38 w&bvm=bv.67720277,d.dGc Hofstede’s 5 cultural factor http://geert­hofstede.com/turkey.html

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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 is surrounded by eight countries: Bulgaria to the northwest; Greece to the west; Georgia to the northeas Armenia, Iran and the Azerbaijani exclave of Nakhchivan to the east; and Iraq and Syria to the southeast.Th Mediterranean Sea is to the south; the Aegean Sea is to the west; and the Black Sea is to the north. Turkey's location at the crossroads of Europe and Asia makes it a country of significant geostrategic importance Turkey has the world's 15th largest GDP by PPP and 17th largest nominal GDP. The real GDP growth rate from 2002 to 2007 averaged 6.8% annually, which made Turkey one of the fastest growing economies in the world during that period.Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey's well­regulated financial markets and banking system helped the country weather the global financi crisis and GDP rebounded strongly to around 9% in 2010­11. Growth dropped to roughly 3% in 2012­13. Turkey remains dependent on often volatile, short­term investment to finance its large trade deficit.Turkey's relativel high current account deficit, uncertainty related to monetary policy­making, and political turmoil within Turkey neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence. 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.

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