 Choose a country and try to identify its overall attractiveness in terms of cost, benefit

and risk.
 Conduct a PEST analysis along with its main cultural determinants

Political Benefits: Political Costs: Political Risks:

•Secularism
•Anti-corruption and bribery
laws
•Strong trade relations with
EU and America.
•Border connecting to 8
nations
Economic Benefits:
•Free market economy
•Stable economic growth
•Infrastructural development
•Incentives and tax
exemptions for investors
•High volume consumer
spending
Legal Benefits:
•Property ownership rights to
183 nations’ citizens
•Legislations governing
ownership of property
•IP laws aligned with EU laws
•Improved legal framework.
•Initiatives to maintain
international standards
•78th in the Corruption
Perception Index
•Market access through
Bribery
•Unethical partnership among
officials and institutions
•Govt’ officials illegally
raising tariffs
Economic Costs:
•Ranked 142nd in dealing
with construction permits
•Less than a week time to set
up businesses
•70 days to obtain electrical
connections
•Frequent market trips to fulfil
Turkish criteria
Legal Costs:
•Less than a week time for
property registration
•Difficulty protecting
investors and obtaining credit
•15 taxes to be paid by
corporate individual
•7 documents to be filed by
importers and exporters.
•Instability near boarding
countries
•Political friction among
Islamists and secularists
•Divisive political agendas
Economic Risks:
•Uncertain exchange rates
•Reliance on external funding
•Import-dependent structure of
manufacturing
•Increasing national debt
•Weakened central bank
reserves
Legal Risks:
•Frequent changes in the legal
environment
•Short Implementation
deadlines
•Undetected corruptive and
fraudulent activities
•Prevalent regulatory issues

Cultural Dimentions

Power Distance: High score of 66. Dependent & hierarchical systems.

Individualism: Low score of 37. Collectivistic society.

Masculinity: Score of 45. Feminine side of the scale.

 
Uncertainty Avoidance: High score 85. Need for laws and rules.
Long Term Orientation: A score of 46. No dominant cultural preference.

Indulgence: A score of 49. Characteristic cannot be determined.

 CPI
Turkey’s CPI score was 40 in 2020, averaging 39.4 points from 1995 until 2020.

 FDI

Despite the devastating impacts of Covid-19, Turkey became the 9th most popular FDI
destination in overall Europe in 2020, with 160 projects and increasing its share in the entirety of
Europe from 3% in 2019 to 3.1 percent in 2020.

 Regional economic integration

Turkey is a member of the Euro-Mediterranean Partnership, enjoying unrestricted commerce

with nations in the southern Mediterranean.

 Major Trading Partners

Germany, United Kingdom, United Arab Emirates, Iraq and United States, China,
Germany, Russian Federation, United States and Italy.

 Key local companies

 Adana Cement
 BOTAS (Botas Petroleum Pipeline Corporation)
 Turkish Airline Company
 BMC
 Turkish State Railways (TCDD)
 AK Bank
 Electricity Generation Company

 Key resources
 Coal
 Lignite
 Natural Gas
 Iron Ore
 Copper
 Gold
  Culture
•Language: Turkish, Kurdish, French, German, and English are commonly spoken.

•Social Convention: Shaking hand is the normal form of greeting a stranger.

•Religion: Islam is the most popular religion in Turkey but since a constitutional change in 1928,
Turkey has been a secular republic with no official religion.

•Clothing: Traditional Turkish and Modern.

•Turkish Cuisine: Named one of the three great cuisines of the world.

•Turkish Tea: Authentic method of brewing and drinking tea.

•Food Restrictions: Pork is prohibited. Alcohol, on the other hand, has long been a part of
Turkish culture.

•Festivals: More than 100 festivals are held in Turkey every year.

 Geographical location
Turkey has a total area of 301,382 square miles. It is mostly located in Asia, with about 5%
located in Europe. It shares borders with Greece and Bulgaria to the northwest; the Black Sea
to the north; Georgia to the northeast; Armenia, Azerbaijan, and Iran to the east; Iraq to the
southeast; Syria and the Mediterranean Sea to the south.

 5 interesting facts about Turkey

 The story of Santa Claus originated in Turkey.
 The name "turquoise" comes from Turkey.
 Turkish women had legal rights to get a divorced, if their husbands couldn’t provide them
with basics like coffee.
 Turkey is home to 82,693 mosques.
 Istanbul is on two continents

Competitive Advantages (Textile & Tourism Industry)

 Porter’s Diamond Model

Factor Conditions
Textile: Rich in essential resources, large labour force, proximity to major markets with 4000
technical textile schools.
Tourism: Vast Number of destinations, favorable climate, developed infrastructure and cultural
tolerance
Demand condition
Textile: Ranked 16th in GCR, large domestic market and young population with high demand.
Tourism: Young and active population density and increasing migration.
Related and supporting Industries
Textile: Competitive capacity, availability supply chain components and coordination
institutions to aid export.
Tourism: Sufficient supplementary services and public policies toward tourism.
Strategy, Structure, And Rivalry
Textile: Ranked among the best countries in the competitive index of investor protection and
intensity of local competition.
Tourism: Heavy investment by government, continued archeological excavations and
competition with other well-organized countries.