The importance of Turkey has risen steadily in recent years. The emerging market is the 17th largest economy in the world and plays the role of a strategic partner between the West and the Middle East. This scientific paper analyses Turkey from a business perspective. With a PESTLE analysis, an overview of Turkey is provided and strengths, weaknesses, opportunities and risks of an investment in the country are illustrated with a SWOT analysis.
Table of Contents
1 Introduction
2 PESTEL Analysis
2.1 Political
2.2 Economic
2.3 Socio-Cultural
2.4 Technological
2.5 Environmental
2.6 Legal
4 Conclusion
Objectives and Topics
This scientific paper provides a comprehensive business-oriented analysis of Turkey, evaluating its potential as an investment location by identifying key strengths, weaknesses, opportunities, and risks through the PESTEL framework and a culminating SWOT analysis.
- Strategic assessment of Turkey's political and economic stability.
- Evaluation of socio-cultural dynamics and the local labor market.
- Analysis of technological infrastructure and logistics capabilities.
- Identification of environmental and legal framework risks for international investors.
- Synthesis of business prospects using a SWOT analysis model.
Excerpt from the Book
2.6 Legal
Like most Western European countries, Turkey has a primary civil law, which is divided into commercial, civil and criminal code.This means that Turkey shares the same values of western European countries.37
Time factor also plays an important role in business. Therefore, it is important to know how long it takes to start a business. In Venezuela, investors need minimum 144 days to start a business. Turkey, however, offers the possibility of starting a business in six days only.38 Thus, companies can achieve earlier turnover in Turkey.
Since 2006, Turkey’s tax system has become friendlier to foreign investors. Internationally, the corporate tax rates are between 9 to 40%.39 In Turkey, the corporation tax of 30% was reduced to 20%. Besides, the retention tax of holding bills, bonds and stocks were cancelled for foreign investors.40
However, considerable problems exist in the protection of intellectual property rights. Intellectual property rights is definited as the legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties.41 These include industrial property (patents, inventions, trademarks and industrial designs) and copy rights on music, art, books, movies and so on.42 The United States Trade Representative (USTR) publishes yearly the “Priority Watch List”. Countries that are on the list are characterized by lack of protection of intetellectual property. Turkey has been on the list since 2008. According to the USTR, the main problems of Turkey are: Internet piracy, book piracy, retail piracy (optical disk) and mobile device piracy.43
Summary of Chapters
1 Introduction: This chapter highlights the rising importance of Turkey as an emerging market and outlines the research objective to analyze the country from a business perspective using the PESTEL and SWOT methods.
2 PESTEL Analysis: This section provides a detailed examination of Turkey's political, economic, socio-cultural, technological, environmental, and legal structures to assess the viability and risks for international business operations.
4 Conclusion: This final chapter synthesizes the findings, confirming that while Turkey offers significant opportunities as a strategic bridge between markets, investors must carefully weigh these against identified systemic risks such as political instability, corruption, and intellectual property concerns.
Keywords
Turkey, PESTEL Analysis, SWOT Analysis, Emerging Market, Foreign Direct Investment, Economic Growth, Political Stability, Infrastructure, Socio-Cultural, Intellectual Property, Corruption, Legal Framework, Investment Risks, Trade Policy, Strategic Partner
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on providing a comprehensive business-oriented country analysis of Turkey to evaluate its suitability as an investment location for international enterprises.
What are the central thematic fields covered?
The work covers political, economic, socio-cultural, technological, environmental, and legal factors influencing the business environment in Turkey.
What is the main objective or research question?
The objective is to fill a research gap in current business literature regarding Turkey by identifying the strengths, weaknesses, risks, and opportunities for companies operating within the country.
Which scientific methodology is employed?
The paper utilizes a PESTEL analysis to structure the environmental scan and concludes with a SWOT analysis to summarize the strategic position of the country.
What does the main body address?
The main body examines the specific components of the PESTEL framework, detailing Turkey's parliamentary republic, its economic sectors and trade relationships, demographic structure, infrastructure development, environmental risks, and the legal aspects of doing business.
Which keywords characterize this work?
Key terms include Turkey, PESTEL analysis, SWOT analysis, emerging market, FDI, investment risks, and intellectual property protection.
How does the Turkish education system impact potential investors?
According to the text, the Turkish education system ranks low in comparison to OECD countries, implying that companies may face higher costs for training less-skilled personnel.
What is the significance of the 2013 corruption scandal mentioned?
The scandal raised significant concerns regarding the independence of the Turkish judiciary and the separation of powers, which serves as a cautionary point for international investors regarding governmental transparency.
How does geographical location influence Turkey’s market potential?
Turkey's location at the intersection of Europe, Asia, and Africa, combined with its access to major seas, positions it as a strategic logistical hub and a gateway between the West and the Middle East.
What specific threat does the author identify regarding infrastructure?
The author highlights that Turkey is a high earthquake-prone area, specifically noting that an earthquake in the economic hub of Istanbul would have catastrophic economic consequences.
- Quote paper
- Hakki Türeyen (Author), 2014, Country Analysis of Turkey, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/272837
