Turkey
Abstract
This paper explores the different characteristics in the economic and cultural aspects in the country of Turkey in relation to introducing a foreign business into a new country. The economic characteristics that will be assessed will be factors such as GDP per capita and GDP growth rate, Inflation and Unemployment, FDI inflows, FDI potential index, and FDI performance index, along with the country’s competitive index. There will be an explanation of how the factors mentioned above have effected the country’s economic freedom in the last 10 years and how it changed, how corruption changed in the last 10 years, and how governance changed in the last 10 years. Lastly it will explore the country’s culture relevant to running a business in Turkey such as the political, legal, social, religious, and gender based aspects along with an evaluation of the Hofstede framework for Turkey.
In 2002, Turkey, along with many other countries, suffered from a global economic downturn but came out relatively un-hurt and continued through out the years to work on a more open and free economy (2013 index of). Their largely free-market economy is driven by its industry and service sector with 25% of employment coming from its traditional agriculture ("The world factbook,”). Their GDP per capita (PPP) has had a large growth from 6,800 in 2000 to 14,700 (US$) in 2011 (refer to graph 1.1) ("Index mundi," ). With the global economic conditions and tighter fiscal policy, in 2009 the GDP growth rate experienced a hit but due to Turkey’s well regulated financial markets and banking system it re-bounced with a GDP growth rate of 8.5% in 2011 from a 6% in 2000 and -4.7% in 2009 (refer to graph 1.2) ("Index mundi," ). The inflation rate in Turkey has continued in a decrease in the past 10 years from 45.2% in 2002 to 6.5% in 2011. These numbers show the annual percentage change in consumer prices compares to previous years (refer to graph 1.3)("Index mundi," ).
This paper explores the different characteristics in the economic and cultural aspects in the country of Turkey in relation to introducing a foreign business into a new country. The economic characteristics that will be assessed will be factors such as GDP per capita and GDP growth rate, Inflation and Unemployment, FDI inflows, FDI potential index, and FDI performance index, along with the country’s competitive index. There will be an explanation of how the factors mentioned above have effected the country’s economic freedom in the last 10 years and how it changed, how corruption changed in the last 10 years, and how governance changed in the last 10 years. Lastly it will explore the country’s culture relevant to running a business in Turkey such as the political, legal, social, religious, and gender based aspects along with an evaluation of the Hofstede framework for Turkey.
In 2002, Turkey, along with many other countries, suffered from a global economic downturn but came out relatively un-hurt and continued through out the years to work on a more open and free economy (2013 index of). Their largely free-market economy is driven by its industry and service sector with 25% of employment coming from its traditional agriculture ("The world factbook,”). Their GDP per capita (PPP) has had a large growth from 6,800 in 2000 to 14,700 (US$) in 2011 (refer to graph 1.1) ("Index mundi," ). With the global economic conditions and tighter fiscal policy, in 2009 the GDP growth rate experienced a hit but due to Turkey’s well regulated financial markets and banking system it re-bounced with a GDP growth rate of 8.5% in 2011 from a 6% in 2000 and -4.7% in 2009 (refer to graph 1.2) ("Index mundi," ). The inflation rate in Turkey has continued in a decrease in the past 10 years from 45.2% in 2002 to 6.5% in 2011. These numbers show the annual percentage change in consumer prices compares to previous years (refer to graph 1.3)("Index mundi," ).