Foreign Direct Investment pestel analysis of Turkey



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FDI TURKEY

Foreign Direct Investment

PESTEL analysis of Turkey

Xurramova Umida EU 19

Introduction

  • PESTEL analysis of Turkey
  • This detailed PESTEL analysis of Turkey aims to explore some of the political, economic, social, technological, environmental, and legal factors affecting Turkey today. Turkey is a beautiful country. It is also a major emerging economy and a key regional power.

Political factors affecting Turkey

  • Turkey, officially known as the Republic of Turkey, is a powerful transcontinental country bordered by Greece, Bulgaria, Georgia, Armenia, Azerbaijan, Iran, Iraq, and Syria. It also borders Egypt, Cyprus, Romania, Russia and Ukraine by sea. It is a secular state and was a parliamentary representative democracy until 2017 when a presidential system of government was adopted through a referendum. The new system makes the President of the Republic the Head of State. Turkey was once the centre of the Ottoman Empire.
  • Turkey is an important member of some of the biggest institutions in the world such as the United Nations, the IMF, the World Bank, the OECD, the OIC, the EEC, NATO, and G20. It is an ally of the United States of America. However, Turkey’s purchase of Russian S-400 has strained its relationship with the USA and the latter has recently removed the former from the F-35 fighter jet programme (BBC, 2019). Turkey also faced a big political challenge in 2016 when a military coup took place. The coup failed; however, created a lot of uncertainties and affected the political dynamics of the country. Similarly, the terrorist attacks, and political instabilities in neighbouring countries have affected Turkey to a great extent.

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