TURKEY
PROFESSOR OSBORNE
INTERNATIONAL BUSINESS - INT-113

TURKEY'S BACKGROUND

• Location: Southeastern Europe and Southwest Asia bordering the Black Sea, the Aegean Sea and the Mediterranean Sea
• Geography/Climate: hot-dry summers with mild wet winters
• Population: 81,619,392 (2014)

Main Cities Population and Communication

• Istanbul: 13.954
• Ankara: 4.644 (Capital)
• Izmir: 2.989
• Bursa: 1.869
• Adana: 1.778
• Gaziantep: 1.488
• Internet Domain: .tr
• Major Languages: Turkish 70 - 75%, Kurdish 18% other 7 - 8%
• Activities: Sports , Entertainment, Art and Theater

Quality of Life

• Life expectancy: 73 years (males 71 - females 75) (2014)
• Literacy rate: 95% can read from 15 years and up (98.4 males - 91.8 females) (2015)

My Reasons for Turkey

• Turkey has always been a country I wanted to know more about, With my grandfather being Turkish and being killed before my mother was old enough to know about him or his roots, I was always intrigued of knowing more and this is a great way to learn

Economic Conditions

• Employment rate: Agriculture 25.5%, Industry 26.2%, Services 48.4% (2014)
• Unemployment rate: 9.4% (2014)
• Gross Domestic Product (GDP): Agriculture 8.2%, Industry 26.9%, Services 64.9%
• Exports: Automotive & Parts
• Imports: Oil & Mineral
• Inflation rate: 8.9% (2014)

Business Conditions

• High Culture: Literature is mostly poetry
• Music: Turkey has mixed classical music from the western country and mixed it with their own culture
• Religion: 99.8% are Muslims the rest are Christians and Jews
• Diet: Stews of vegetables and meats (beef and lamb) sourdough bread and pastries

Business Conditions Cont.

• Holidays: New Years Day, Children's Day, National Sovereignty Day, Victory Day & Republic Day
• Social Culture: Men dominate the high power positions although there is equal pay
• Power Distance: is high in Turkey which means people accept the order of positions

Business Conditions Cont.

• Individualism vs Collectivism: Turkey is a collectivism country which means they work in groups and look after each other
• The affect of doing business in Turkey would not be that difficult because it a modernized country and the people are warm and welcoming. They accept the hiearchy method and work in groups. Unless you discuss religion then it can affect the business

Business Infrastructure

• Currency: Lira
• Exchange rate: 2.66 lira for every American Dollar
• Central Bank: Merkez Bankasi
• Commercial Banks: Citibank, Akbank, Arab Turkish Bank and more
• Stock Exchange: Borsa Istanbul
• World Bank: Turkey has many projects with the World Bank

Business Infrastructure

• Banking Systems: In Turkey is similar to USA, loans and credit are given out
• Banking Laws: Must have a joint venture to open an account/business

Physical Infrastructure

• Transportation: There are many ways to get around Turkey, such as cars, trains, planes, boats and ferry's
• Power supply & Communications: 1 billion kilowatts usage (2013), 13 million telephone lines (2012), 7 million internet host

Country-Specific Recommendations

• Turkey is a full member of the BSEC (Black Sea Economic Cooperation) since June 1992 their aim is to enhance stability through economic cooperations.
• Turkey is also a full member of the WTO (World Trade Organization) among many other organizations.
• The BSEC main goal is to help its members with any trading issues.

Best Way to do Business

• Starting a business: Procedures 7; Days 6.5; Cost (% of income per capita) 16.4; Paid in min. capital (% of income per capita) 12.1
• Export Trading Across Borders: Documents to export 7; time to export 13.0; cost to export (US$ per container) 990.0
• Import Trading Across Borders: Documents to import 8; time to import 14.0; cost to import 1235.0
• The best option for a MNC to do business in Turkey is to Export Goods because it takes less time and money

Recommendations

• Turkey has reformed doing business in 2015 for corporation more difficult, by increasing their notary and registration fees and becoming more costly to start a business
• Corporate Taxes are higher because they increased social security contributions for employers

Summary

• Country Specific Considerations: Turkey is a growing economy, it has grown 5% since 2010 and its top export industry is Automotive and Precious Stones. Their major GDP is their services and the second one is the industry.
• If I was to recommend a MNC to enter the Turkey market I would recommend they enter into either the Export of Automotive or into the Service Industry

References

• Turkey: Government. (n.d.). Retrieved June 19, 2015, from http://globaledge.msu.edu/countries/turkey/government
• Regional Trade Blocks, Tariffs and Trade Barriers. (n.d.). Retrieved June 19, 2015, from http://www.rosalienebacchus.com/articles/RegionalTradeBlocks.html
• Countries and Their Cultures. (n.d.). Retrieved June 20, 2015, from http://www.everyculture.com/To-Z/Turkey.html
• (n.d.). Retrieved June 20, 2015, from https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html

References

• What about Turkey? (n.d.). Retrieved June 20, 2015, from http://geert-hofstede.com/turkey.html
• List of Commercial Banks in Turkey. (n.d.). Retrieved June 20, 2015, from http://www.globalbrandsmagazine.com/list-of-commercial-banks-in-turkey/ (n.d.). Retrieved June 20, 2015, from http://www.tcmb.gov.tr/wps/wcm/connect/tcmb en/tcmb en

References

• Borsa Ä°stanbul will calculate the Performance of İş Bankası and its Affiliates. (n.d.). Retrieved June 20, 2015, from http://borsaistanbul.com/en/home-page
• Turkey. (n.d.). Retrieved June 20, 2015, from http://data.worldbank.org/country/turkey
• Starting a Business in Turkey - Doing Business - World Bank Group. (n.d.). Retrieved June 7, 2015, from http://www.doingbusiness.org/data/exploreeconomies/turkey/starting-a-busine...
• The World's Trusted Currency Authority. (n.d.). Retrieved June 7, 2015, from http://www.xe.com/currencyconverter/convert/?Amount=1&From=TRY&To=USD#conve...