Country Risk Analysis - Turkey Essay
Today Turkey is preserved as one of the countries that offer a solid ground for foreign investment. According to the Republic of Turkey Prime Ministry Investment Support and Promotion Agency [PMISPA] (2015), the inflow of Foreign Direct Investment [FDI] has reached 12.5 BUSD in 2014 and the amount of countries with foreign capital is constantly growing. While the biggest Turkey’s assets are mainly related to soil and population, a set of political reforms targeted to support the investment, the close possibility to join the EU contribute largely to growing interest of foreign investors. On the other hand, doing business in Turkey requires deeper understanding of local culture, people and …show more content…
The geographical advantages, both touristic and strategic benefits, as well as high governmental aspirations within the infrastructure development make Turkey a lucrative venture for investment.
Over the last ten years Turkey has experienced a thorough economic transformation and is today based on a solid economic ground. Currently, it is the 17th largest economy in the world, the 6th largest economy in Europe and its GDP has increased within the last 15 years reaching approximately USD 800 billion in 2014 (CIA, 2013). The purchasing power of population is increasing, which leads to higher demands for new products and services. Moreover, the Turkish government has forecasted the further increase of GDP per capita to US$20,000 by 2023 (PMISPA, 2015). All the above mentioned factors contribute positively to establishing good conditions for business opportunities in Turkey.
The Turkish region is rich in resources, which supports the vast development of