Potential of Turkey for Foreign Investments: External Environmental Factors, Trade Policies and Barriers

Running head: MANAGING ACROSS BORDERS
Managing across borders
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1MANAGING ACROSS BORDERS
Executive summary
The aim of this report is to discuss about the potentiality of Turkey in relation to the foreign
investments. This report discussed about the external environmental factors of Turkey that will
be faced by the investing business organizations. In addition, the existing trend of the foreign
direct investments in Turkey is also being discussed in this report. The existing trade barriers and
policies of Turkey are also being critically analyzed in this report. In accordance to the identified
issues and shortcomings, this report discussed a few recommended steps that will help Turkey to
be a more attractive country in terms of attracting foreign direct investments.

2MANAGING ACROSS BORDERS
Table of Contents
Introduction......................................................................................................................................3
Country overview............................................................................................................................4
External environmental factors in Turkey.......................................................................................4
Political factors............................................................................................................................4
Economic factors.........................................................................................................................7
Social factors...............................................................................................................................8
Technological factors...................................................................................................................9
National resources of Turkey.........................................................................................................11
Foreign currency and exchange.....................................................................................................13
Trade policies and barriers in Turkey............................................................................................14
Existing level of foreign direct investment....................................................................................15
Recommendations..........................................................................................................................16
Conclusion.....................................................................................................................................17
Reference.......................................................................................................................................18

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Introduction
The current business scenario poses diverse opportunities as well as challenges for the
business organizations. The major opportunity for them is the increase in the market size while
the major challenge is the increase in the number of competitors. In accordance to tap these
opportunities and overcome the challenges, various initiatives are being inherited by the
contemporary business organizations. One of those strategies is the foreign investments. In the
recent time, rate of foreign investments is rapidly increasing worldwide (Salacuse 2017). This is
mainly due to the reason that initiation of foreign direct investments is having benefits for both
the investing organizations and the host country.
Foreign investments help the business organizations to enter in the new countries and tap
the new market there. Thus, their limited market opportunities in the home country get increased.
On the other hand, host countries attracting foreign investments are having the advantages of
economy growth, increase in foreign reserves and employment opportunities (Gholipour, Al-
mulali and Mohammed 2014). However, for the business organizations, there are various factors
that should be considered by the business organizations before investing in foreign countries.
Some of these factors are the external business environment in the target country, resources
available, current investment trend and trade policies and barriers.
In the current time, more countries are initiating different policies and practices in order
to attract more foreign investments. Among these countries, Turkey is one of leading countries,
which is offering extensive business opportunities for the investors. Moreover, the strategic
location of Turkey is also helping them in having foreign investments. This report will discuss
about the external business organizations prevailing in Turkey in the current time. In addition,