Turkey - Research Paper Example

In the business world companies have realized that they need to expand beyond their domestic markets in order to grow as business entities. The globalization movement that started in the 20th century has become more instrumental today. Organizations have to evaluate a potential foreign market prior to penetrating. A country that will be evaluated in this paper in order to determine if the location is a good place for investment and development is Turkey. Turkey is located between Europe and Asia near the entrance of the Black Sea.

The size of Turkey is 302,633 square miles which roughly the size of Texas. The region is heavily populated with a population of 77.8 million. There are 257.6 people per square miles in Turkey. The fact that the country has a large population relative to its size is a good business proposition because there a lot of potential customers looking to spend. A business risk associated with Turkey is the fact that country is one of the world’s most earthquake prone regions (CultureGrams, 2011). An important factor that determines the viability of penetration in a region is the income of the population.

Turkey has a gross domestic product per capita of $11,500. Agriculture is the bulk of the economy providing for the majority of the exports of Turkey. Agriculture provides a high percentage of the jobs, but it represents a low percentage of the gross domestic product. The main agricultural products produced in Turkey are cotton, tobacco, sweet fruits, olives, cereal, nuts, livestock and opium for medical purposes. The manufacturing sector in Turkey employees about a quarter of the population and it represents nearly 50% of the gross domestic product.

Tourism is a growing industry in Turkey. Inflation is traditionally high in Turkey and it is currently hovering at around 10% (CultureGrams, 2011). The dominant religion in Turkey is Sunni Muslim with 99% of the population practicing this religion. Turkish is the official language of Turkey. The government of Turkey is a constitutional republic with a multiparty parliament. The current president and head of state is Addullah Gul. In 2007 the people voted for the president to be elected to 5-year terms elected by the people, instead of the old system in which the president served a 7-year term elected by parliament.

The roads in urban areas are paved and in good condition. This is a positive sign for business activities due to the fact that transportation infrastructure is a necessity to facilitate business movement. The currency of Turkey is the lira (YTL). The current value of the lira in comparison with the US dollar is 1.00 dollar to 1.59 lira (Xe, 2011). Turkey is a country with a stable political system. The population has a fair gross domestic product per capita number. The region has a heavy population density.

The economy is based on a combination of agriculture, manufacturing, and tourism. Inflation has been a problem in the past, but currently it is stable. The monetary system of Turkey is stable. Based on these facts I would consider Turkey a good location to invest in. References CultureGrams (2011). Turkey. Retrieved March 8, 2011 from CultureGrams database. Xe.com (2011). Universal Currency Converter Results. Retrieved March 8, 2011 from http://www.xe.com/ucc/convert.cgi?Amount=1&From=USD&To=TRY&image.

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