Investment in Turkey: Overview, Factors, and Recommendations

This presentation provides an overview of Turkey's economy and investment climate, including political, economic, social, and technological factors affecting foreign direct investment. It also covers the existing level of foreign direct investment and provides recommendations for investing in Turkey. The presentation concludes that Turkey's strategic location, vast natural resources, and comparative advantages make it an attractive destination for foreign investment, but investors should be aware of the complexities of government regulations and documentation.

Investment in Turkey

Introduction
• Foreign direct investment is one of the most
popular concept in the recent time.
• It helps the organizations in having more market
opportunities.
• It helps the countries to have more growth of
economy.

Country overview
• Turkey situated in the Eurasian region.
• It is strategically located with European region on
one side and Asian countries on other.
• Currently, they are ranked as 17th country in the
world in terms of nominal gross domestic product.
• Favorable political environment.

External environmental
factors in Turkey
• Turkey is having diverse environments.
• Different positive and negative factors will be
faced by the organizations.
• They will face various challenges and
opportunities.

Political factors
• Turkey is having democratic and republic type of
government.
• Turkey is the member of European Union.
• They follows free trade policies.

Economic factors
• Currently, Turkey is having economy growth rate
of 1.8 percent.
• Growth rate of Turkey will stay positive in the
coming years till 2020.
• Favorable government budget balance.
• Turkey is ranked at 54 in terms of government
budget balance.

Social factors
• Turkey is having favorable social environment in
the country.
• With the increase in population and per capita
income in the country, the market demand in
Turkey is also witnessing growth.
• One of the major social challenges that will be
faced by the investors in Turkey is the quality of
the education and training in the country.

Technological factors
• Turkey is witnessing huge growth in technological
development.
• Communication technologies are the major
portion of technological advancements in the
country.
• According to the report by Global Competitive
Index, Turkey is ranked at 57 in terms of
availability of latest technologies.

National resources of
Turkey
• Geographic location of Turkey.
• Another source of competitive advantages in
doing business in Turkey is mineral reserves.
• Lower cost of human resources.

Foreign currency and
exchange
• Turkish currency is constantly decreasing
compared to Dollar.
• Thus, the foreign exchange is fluctuating.
• Currently, the valuation of Turkish currency
stands at 1 Turkish Lira equals to 0.25 US$.

Trade policies and
barriers in Turkey
• Foreign Investment Law 2003 acts as the
umbrella for all the foreign investments related
activities.
• Technology development zones and organized
industrial zones.
• One of the major barriers is the inconsistent
policies of the government.
• Another major barrier for the foreign investments
in Turkey is restrictions in investing in a few
sectors.

Existing level of foreign
direct investment
• According to the reports, Turkey had US$ 12.3
billion as per 2016.
• The rate of inflow of foreign direct investment is
fluctuating in nature.

Recommendations
• Turkey should initiate Euro as their primary
currency.
• Turkey should initiate the single window policies
in permitting the foreign direct investments.
• Turkey should lift the restrictions from the
restricted sectors in order to have more foreign
investments

Conclusion
• Turkey is having vast natural resources and
different comparative advantages that helps
them in attracting foreign investments in the
country.
• Strategic geographical location of Turkey is the
major advantage for the business organizations.
• The major barrier that will be faced by the
business organizations in Turkey will be the
complexities in regulations and documentation of
the government.

Reference
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