Business Environment of Turkey - Research Paper Example

Contents 1.0Introduction 2 2.0History of Turkey 2 3.0 Cultural Issues 3 3.1 Language 3 3.2 Religion 3 3.3 Food 3 3.4 Business Culture 4 4.0Economic Structure and Issues 4 6.0 Demographics 5 7.0 Political and Legal Structures and Issues 6 8.0 Technological Development 7 10.0 New Business Venture 8 Turkey 1.0 Introduction The Republic of Turkey (hereafter referred to as Turkey) is strategically located as it straddles the continents of Europe and Asia. This advantageous location has given Turkey a direct command over the entrance to the Black Sea and a major influence in the region (BBC News, 2014). 2.0 History of Turkey Modern day Turkey was occupied by the Indo-European Hittites in the 1900 B.C. The Hittite empire collapsed in 1200 B.C. after which the Phrygians and Lydians ruled the country. Turkey is known to have been subjugated by the Persian Empire, the Roman Empire, and the Byzantine Empire. The Ottoman Turks started their conquest of Turkey in the early 13th century by overpowering the Turkish and Mongol bands and taking over the Christian Balkan states (Rhodes, 2004). The Turks captured Constantinople in 1453 and conquered Vienna about 200 years later. The Ottoman Empire, which dominated the region for approximately 600 years, collapsed politically, administratively, and economically after its defeat in World War I (Szczepanski, 2014). National hero Mustafa Kemal founded present day Turkey in 1923. Mustafa Kemal was honored with the title Ataturk which means ‘Father of the Turks’ 3.0 Cultural Issues Turkey is besieged with corruption and favoritism in government and daily life (Eroglu & Picak, 2011). The government has initiated some anti corruption measures; however the stringent implementation of these strictures still remains an issue. 3.1 Language Turkish is the official language of the country. A vast majority, 90 percent, of the people in the country speak Turkish. In addition to Turkish, the Kurdish language is spoken by around 6 percent of the population. The other minority languages include Arabic, Circassian, Greek, Armenian and Judezmo (BBC Monitoring European, 2009). 3.2 Religion Turkey is a Muslim dominated country. 99.8 percent of the people living in the country are Muslims (mostly Sunni). Christians and Jews form a minuscule .2 percent of the population. 3.3 Food The Turkish society has a rich culinary culture which is evident from the vast variety of food items including eggplant dishes, salads, kebab, hamsi, and pastrami available in the country. The food habits of the Turkish vary according to geographic regions, socio-economic status, and religious structures and norms. 3.4 Business Culture The business culture in Turkey is pretty formal. Exchanging cards during the introductions is a norm. The Turkish are extremely hospitable and view foreigners as their guests. Meetings in person are preferred over telephonic conversations. Businesses thrive on relationships, trust and rapport with other stakeholders. Informal dresses in a business meeting are deemed to be lack of seriousness (Business Culture, 2014). 4.0 Economic Structure and Issues Turkey is fundamentally a free-market economy where the industrial and services sector contribute bulk of the gross domestic product. A wave of privatization reduced government’s involvement in industries like banking, communication and transportation. A budding class of entrepreneurs is venturing beyond the conventional businesses like textiles and adding dynamism to the marketplace. The economy of Turkey faced a severe financial crisis in 2001 after which the country initiated numerous fiscal and monetary reforms. The country registered robust economic growth rates for most part of the decade. Turkish consumers enjoy an urbane lifestyle. Turkey is one of the few countries that bucked the trend of dismal growth rates due to the latest recession of 2008. While the global economy looked in deep trouble, Turkey managed to keep its head above the water. Turkey’s GDP of 6.7 percent is much higher than the GDP of most European Union countries (Allen, 2012). The economy however slumped in 2012-13. At present, high current and fiscal deficit, uncertain monetary policy and political turmoil in neighboring regions plague the economy. 5.0 Formal and Informal Education Systems The Constitution of Turkey provides for free and compulsory primary education to all the citizens of the country. The Ministry of National Education (MEB) is entrusted with the task of building schools, developing educational material and coordinating the work of public, private and voluntary organizations (Celik & Gur, 2013). The government sets aside approximately 10 percent of the budget for education. The formal education system in the country includes pre-primary education, primary education, secondary education, and higher education. Meanwhile, a network of training centers provides non-formal education in the country. These centers, monitored by MEB, strive to teach reading-writing to the illiterate and assist people to finish their incomplete education. These centers also advice people on nutritional food habits and importance of a healthy life style. 6.0 Demographics The total population of the Turkey was estimated to be 80 million in 2012. More than one-fourth of the population is below the age of 14 years. Close to 43 percent of the population in the country is aged between 25 and 54 years. Only 13.3 percent of the people are above 55 years of age (Cia.gov, 2014). The country has taken important steps to safeguard the interests of children. Turkey signed the UN Convention on the Rights of the Child on September 14, 1990. The country is also a signatory to the Sale of Children and the Optional Protocol on the Involvement of Children in Armed Conflicts. The country has a favorable demographic profile. Turkey will definitely reap the benefits of the demographic dividend as it has resolved to take utmost care of the youngest section of the society. This age segment will become the work force of the country in later years. An estimated 60 percent of the population is less than 35 years of age suggesting that the dependency is pretty low in the country 7.0 Political and Legal Structures and Issues Turkey is a republican parliamentary democracy. The country gained independence on October 29, 1923. The President, who is elected directly for a five-year term, is the chief of the state while the Prime Minister is the head of the government. At present, there is social unrest in the country because of Recep Tayyip Erdogan’s government allegedly involvement in a corruption scandal. However, Prime Minister Recep Tayyip Erdogan of the Islamist-based Justice and Development Party (AKP), who started his third term in 2011, is determined to extend his tenure. He is known to have ruthlessly dealt with challenges from the powerful, secularist military. 8.0 Technological Development Turkey has embraced scientific advancements in the domain of information technology and telecommunications. The country had 13.86 million landline connections in use and a total mobile phone subscriber base of 67.68 million in 2012. The country has developed a state-of-the-art network of intercity trunk lines that operate on fiber-optic cable and digital microwave radio relay. Turkey is linked internationally through the SEA-ME-WE-3 submarine cable as well as by other submarine fiber-optic cables located in the Mediterranean Sea and Black Sea. Turkey had 7.093 million internet hosts and 27.233 million internet users in 2012. That represents close to 45 percent of the total population in the country (RTT News, 2014). 9.0 Global and Regional Agreements Turkey is a founding member of the United Nations (UN), and the Organization for Economic Co-operation and Development (OECD). It is also an associate member of the European Union (EU) since 1963. At present, Turkey is in accession negotiations with the EU. Turkey has introduced extensive human rights and economic reforms as a means to become eligible for accession to the EU. The death penalty has been abolished in the country and the penal code has been revamped. While reforms pertaining to women's rights were also introduced, activists and social help groups allege that these are not being followed in letter and spirit. The government lacks full commitment to equality and has initiated these reforms under EU pressure. The EU membership parleys were initiated in October 2005, however the journey has not been smooth. Countries like Germany and France have serious reservations over Turkey's EU membership. These countries are of the opinion that Turkey should have, at best, a "privileged partnership" with the EU. On the diplomatic front, Turkey has sour relations with its neighbor Greece. The moot point is the divided island of Cyprus. Turkey has had close ties with Israel; however there is a change in stance. The present day approach of Turkey to Israel is confrontational, to say the least. Turkey is a member of the North Atlantic Alliance (NATO) since 1952. The membership has enabled Turkey to integrate with the Euro-Atlantic community. Turkey has been at the forefront in forging and enhancing strategic partnership between NATO and the EU for obvious reasons (Republic of Turkey Ministry of Foreign Affairs, 2014). 10.0 New Business Venture Turkey has emerged as a fashion center and top clothing supplier to other parts of the world. The $30 billion clothing and textile sector in Turkey accounts for 8 percent of the country’s GDP. The country has more than 35,000 operation textile and clothing companies which have propelled Turkey to become one of the largest exporters of textile products (The Financial Express, 2012). I would start an apparel business in Turkey as the country offers the requisite infrastructure and talent for successfully carrying out operations in the clothing sector. I will have numerous avenues for expansion as foreign businesses are on the lookout to ink pacts with Turkish designers and production centers. In addition to opportunities in the global market, I will focus on domestic marketing as well. The apparel that I will start will manufacture clothes only for children. Thus my business will target the 20 million children in the country who are less than 14 years of age. References Allen, C. (2012). Turkey impresses as the best of emerging markets. Investment Europe, (32), 36-37. Retrieved from http://search.proquest.com/docview/1086326495 BBC News,. (2014). Turkey country profile. Retrieved 7 May 2014, from http://www.bbc.com/news/world-europe-17988453 Business Culture. (2014). Turkey. Retrieved 6 May 2014, from http://businessculture.org/southern-europe/business-culture-in-turkey/ Celik, Z., & Gur, B.,S. (2013). Turkey's education policy during the AK party era (2002- 2013). Insight Turkey, 15(4), 151-176. Retrieved from http://search.proquest.com/docview/1461721157 Cia.gov. (2014). The World Factbook. Retrieved 7 May 2014, from https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html Eroglu, O., & Piçak, M. (2011). Entrepreneurship, national culture and Turkey. International Journal of Business and Social Science,2(16) Retrieved from http://search.proquest.com/docview/904521817 Republic of Turkey Ministry of Foreign Affairs,. (2014). From Rep. of Turkey Ministry of Foreign Affairs. Retrieved 7 May 2014, from http://www.mfa.gov.tr/sub.en.mfa?395d59f6-c33c-4364-9744-cff90ec18a3e UN rights office concerned by Turkey's new internet law. (2014, Feb 14). RTT News Retrieved from http://search.proquest.com/docview/1502300804 Rhodes, F. (2004, 11). TURKEY A MODERN HISTORY. Middle East, 65. Retrieved from http://search.proquest.com/docview/220638712 Turkey becoming a highly potential market for bangladeshi apparel. (2012, May 26). The Financial Express Retrieved from http://search.proquest.com/docview/1016439835 Turkey: New language institute to include academic programmes in Kurdish. (2009, Sep 11). BBC Monitoring European Retrieved from http://search.proquest.com/docview/459509926 Szczepanski, K. (2014). Facts and History of Turkey. About.com Asian History. Retrieved 8 May 2014, from http://asianhistory.about.com/od/turkeyhistoryculture/p/Turkey-Facts-And- History.htm Read More