Investment Invitation - Turkey

CORRUPTION

The Association of Certified Fraud Examiners (ACFE) notes that the world average for fraud in organizations is calculated at 7 percent of total turnover, whereas this figure is about 15 percent in Turkey. Despite various anti-fraud laws that have been passed in Turkey and significant attempts to create more a ethical culture in organizations, fraud continues to be an inevitable and unpleasant component of modern life

Hofstede Cultural Dimensions

Power Distance

Hofstede’s Power distance Index measures the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.

Masculinity

Masculinity versus its opposite, femininity refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found.

Individualism

The degree to which individuals are integrated into groups

EDUCATION

Other

-has huge amount of both internal and external debt-under the heavy debt of IMF

- has consistently experienced high inflation

- is not able to perform privatisation , tax reform, structural reforms in the banking sector.

- Has been suffering the sharp depreciation of the Turkish lira

- Has a low rate of labour force to the population (32 %)

- Has political instability -inner war –Kurdish Matter- Cyprus Matter

- Has to spend a huge amount of its budget in buying weapons

- Has no well organized organs of the state.

- Has Political bureaucracy (Red)

Relationship with the European Union

Turkey has wanted to be considered part of Europe since Constanopli and part EU since it's beging. This has been troblesome because of there big majority of muslims and close economic ties with the middle east.

War what is it good for

Kurdish

The Kurdish isuse has been long standing one with human right abuses and unequal society. Causing civil unrest within the country and a civil war for their independence.

Instability within the middle east cause issues of stability for the country of Turkey. Syrias recent civil war and chemical weapons have been a great threat to Turkey and caused much uncertaiinty for Turkey.

Crime

Gangs are a gwoing issue within Turkey as well as civil unrests. Honor killing are also prevelent in certain areas of Turkey.

Terroism

With it's close proximity to unstaable Lebbannon, Syria and Iraq there is many issues with terroist attacks witht the country. As well as terroist threat domestic from the kurdish population.

Opacity Index

31 place in the world in trasarency above China and Russia slighly which signify a unstable country but no out of control. While still having a good legal system competing with most countries in the world.

"Island of Stability"

AKP has succeeded in building a stronger country largely because it has been balanced by "secular, relatively democratic, and rule-based social and political institutions".

Over its decade in power, the democratically elected Justice and Development Party (AKP) has won broad support, and ended decades of de facto authoritarian rule by the generals. And as Prime Minister Recep Tayyip Erdogan said that after his re-election as head of the party, Muslim-majority nations can learn from Turkey's political approach.

Geographic Area

The EU's 5th largest export and 7th largest import partner

Turkey is the meeting place of two fundamentally different cultures. It is part of both Europe and Asia - that part of the country west of the Bosporus is geographically part of Europe.

Turkey shares borders with Greece, Bulgaria, Georgia, Armenia, Azerbaijan, Iran, Iraq and Syria.

Country rich in culture and of historical importance

Top ten tourism destinations in the world; 6th in Europe

Growing Economy

The world's 15th and Europe's 7th largest economy

Biggest growth among OECD countries

Global power

Performance

Best performer among the presented emerging markets as of 2012

From the result of government's determination, Turkey's GDP exceeded that of Europe, the Middle East and Africa (EMEA), as well as the rest of the world. Turkey "remains superior in the region"

For nearly two years, Turkey's PMI has been stronger than Europe's and "outstrips global averages"

Investment

Top Exports: Euro space. Defence, Machinery, Communication technology, and Health care technology.

Great potential in Wind energy. Solar and Geo-thermal. Ranks 2nd in Europe for Solar and Geo-thermal Technology.

Government

“Istanbul is a generous city,” he added. “It shares its beauty, its richness, its values with everybody.”

Incentives

Agriculture sector that in 2010 accounted for 25.2% of employment

Controlled Foreign Companies subject to 10% lower tax rates than residence

Main products: tobacco, cotton, grain, olives, sugar beets, pulses, citrus, livestock

Becoming a member in the European Union

A major political and economic issue over the next decade is whether or not Turkey will become a member of the EU. But further economic and judicial reforms and prospective EU membership are expected to boost Foreign Direct Investment (FDI). Privatization sales in 2010 were about US$ 8.9 billion.

In 2012, Turkey has a lower ratio of public debt to gross domestic product than 21 of 27 members of the European Union and a lower budget deficit to GDP ratio than 23 of them.

Young and Rapidly Expanding

The young and well-educated population offers a responsive workforce and a dynamic consumer market in Turkey, although businesses opportunities remain largely restricted to urban areas.

Driving demand in communications, housing and education. Turkey held the lowest median age of population in 2010, at 29

Global Intregration

7th Largest Economy in Europe

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