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Turkey is the country of the promising growth and good reflection on investing resources. Its economic and social system involves both governmental and private sectors. The dominant role is played by market relations that give the country significant competitive advantages at the international level and in beneficial cooperation with the world economic organizations. Turkey represents a prestigious object of modern investments due to its efforts to gain economic growth.
Turkey experienced a slight downturn of its numerous macroeconomic indicators as evidence of a certain fall of its economic activity. Historic development of the country was affected by both the recession and recovery of the business cycle. Last century, Turkey followed the same tendency as the rest of the countries of the world and achieved economic growth. Consequently, its internal social transformation reflected these dynamics and emphasized industrial progress and urbanization instead of prior agricultural positions. The government support and protection significantly boosted the rapid growth of the national economy and its improved services. Another evidence of the governmentâs contribution was identified when the state opened its national economy to the international exchange in the 1980s. However, economic prosperity has changed to oppression due to corruption, macroeconomic instability, etc.
Householdsâ consumption occupied a large part of Turkeyâs GDP that positively resulted in economic growth along with international trade and investment. Regarding macroeconomic changes, gross GDP repeated the internal advancements and shortcomings of the national economy (Metin-Ozcan et al. 244). Recent dynamic changes led to its rise. However, the level of Turkeyâs development was below the indicator condition of the well-being of the community of other nations (Podder 427). Since 2010, investment has begun to activate the economy of Turkey sharply due to the rapid rate of consumption and international exchange. Therefore, Turkey showed its readiness to return the invested support through appropriate direction government policy and liberalization of market relationship, including its international level. The transfer to the market economic model of performance has identified Turkey's improving GDP over the last thirty years. The exploitation of human resources has intensified. Moreover, expected productivity is more than 3% until 2030. However, uncertain changes in the world economy forced Turkey to the emerged necessity to prepare the national economy for the reforms to handle forthcoming decrease by almost 2% (Metin-Ozcan et al. 245).
Regarding income distribution, the GINI coefficient indicated that Turkish society experienced inequality in the distribution of income among the social layers. This indicator was below the optimal level for the countries with optimal levels of GNI per capita and GDP. Therefore, the well-being of the Turkish citizens was relatively unequal among the rich and poor levels of the population. Along with the economic assessment of society, its social evaluation includes the indicators of life expectancy, education, quality of life, living standards, etc. These factors were integrated into the index of human development that was close to 1 and identified its high level in Turkey (Metin-Ozcan et al. 245).
Due to its expanded trading potential, Turkey is an attractive and newly developing market. Its additional advantage is that immediate efforts have eased the passing by crisis and unemployment. The business environment of the country is favorable to the investment and highly skilled professionals that would contribute to the economic growth of the country. The financial surplus of Turkey has reached more than $3,000 million as recorded in 2015. For investors, the important information is that the flows of capital have increased to more than $9,000 million in 2011. The national economy provides broad market opportunities for the venture of business. Entrepreneurial climate may be shared by the availability of the enterprises of small and medium-size that can be the competitors at both domestic and international levels.
Turkey decided to join the European Union and strived to perform any requirements to attain membership. These circumstances resulted in the economic rise from the officially recognized membership in 2005. The strategic goals of the country include complete compliance of its economic and political indicators to the criteria of arrangements concerning the formation of the renewal of economic performance and the intensification of international collaboration. The intention to accept long-term relations with the international organizations was called by the necessity to promote dynamic recovery and reinforce the socio-economic situation after the crisis time.
Turkey is positioned as a country with broad and beneficial opportunities. Along with a booming economy, Turkeyâs rate of annual GDP has significantly risen. The last decade demonstrated the sharply hiked rate of increase that reached $820 billion (Halicioglu 1156). Intensive economic recovery made Turkey notable by its great industrial development. The country is well known for its car manufacturers, steel supplement, etc. (Salor et al. 60). Moreover, Turkey provides profitable investment services for a large variety of economic sectors, including the automobile segment, energy production, mining, real estate, etc.
The country's excellent economic performance has convinced the observers and international economic organizations in making positive confident expectations and forecasts regarding the promising prosperity of the Turkish economy. The positive forecasts in the Turkish economy were recently strengthened by the rating agencies that gave a high level of creditworthiness to the country.
In the last decade, Turkey actively conducted all necessary measurements to assure the developed countries and the international community in its positive investment portfolio. It developed and implemented a range of various investment policies that would be contributive grounds to the imported supplement. These financial reforms were expected to form the attractive business image of Turkey at the international level due to the changes in the investment environment, including improving the legislation. Turkey welcomed direct investment from abroad. It is interested in appropriate investment objects in other countries to get a favor of foreign ventures. Absolute equality in the legal assessment of partnership despite their domestic and international level has made the Turkish economy, mainly real estate market, more available and open. According to legal provisions, all interested entities may invest in the Turkish business, may enter its market without any formal permission, may manage dividends in favor of shareholders in any convenient way, may recruit immigrants, and may have other privileges (Dumludag 15).
According to the emerged opportunities, investors were affected by a relatively flexible and loyal policy of the country. In addition, corporate tax was reduced to 20% for the Turkish businesses and ventures that would give a chance to capture more capital segments worldwide. Significant changes in legislation comprised of the parameters and processes of continuous compliance with international legislation of the EU made Turkey one of the most liberally positioned countries in the world. This comprehensive growth resulted in an increase in production, especially in the short-term. When it comes to the economic benefits for investors, Turkey and its operating firms should be the object of interest of a portfolio manager. National medium-term bonds would be a profitable toolset for investment efficiency.
The investment attractiveness of Turkey may be supplemented with the determination of its strengths, weaknesses, opportunities, and threats. Thus, among Turkeyâs strengths, one can name its place as the leading country in Europe by investment due to promising growth of GDP, strong laws of the financial and banking regulations, companies with a worldwide reputation, and access to mortgage lending. At the same time, Turkeyâs weaknesses are land acquisition and the obtaining of a building permit. Furthermore, the country is riddled with corruption.
External opportunities include strong domestic demand for housing and bonds, availability of a great number of projects in major cities, and engagement in the reconstruction and renewal. In Turkey, laws on earthquakes and natural disasters have increased the need for quality investment and the increasing number of tourists and investors who created opportunities for the economy. Turkeyâs threats are earthquakes that occur frequently in some parts of the country and that may scare off investors. In addition, certain sectors are still not stable as compared to the market of Great Britain and the United States. Therefore, Turkey deserves significant investments due to its strengths and emerged opportunities.
The study of the behavior of the national economy in terms of conditions for sustainable economic growth provides the students with the insight into the trends in the business cycle and the characteristics of Turkey as a developing country. More skills are obtained through the study of the macroeconomic effects that are not associated only with a particular sector of the economy, but that is relevant to all sectors of the Turkish economy. It needs to get the total (macroeconomic) explanation that requires additional skills and abilities. I should consider the behavior of the economy, including all phases of its living cycle, problems of inflation, unemployment, etc. It should be noted that some issues of macroeconomics are related to the national economy, and some of these issues may have implications for a number of countries. In this case, I have to deal with a global macroeconomic analysis that becomes a promising area of further study.
The individual approach to global issues has changed over the course of the semester through the research of main issues related to the macroeconomic level regarding their interdependence and mutual connection. Moreover, global issues may be reconsidered due to flexible fluctuations in their dynamics and cause-and-effect principle. The macroeconomic approach to the consideration of events and phenomena may be directed at the proper and accurate consideration of the micro-level of the national economy of Turkey.
I have obtained knowledge and applied skills to introduce economic and mathematical modeling in the process of macroeconomic analysis, to represent algebraic and graphical models of the different concepts, and to solve problems as well as perform exercises on various topics of the course. I have also learned how to work with the tests, write essays on current topics in macroeconomics, and to work independently with literature. This study allowed me to think economically and give a correct estimate of the economic policy measures, to be able to link the micro- and macro-economic processes in the overall picture of the economy and its separate parts, and to understand the statistical reports and macroeconomic estimates of economic development. I will professionally manifest these skills in the implementation of labor activity and demonstration of professional skills while making reports or arranging contracts with promising investors. It is expected that, at the end of the course, I will have competence sufficient for the independent analysis of peculiarities of fiscal and monetary policy in the developed and/or developing countries.
Taking into account the failures during a period of study, I have reconsidered their occurrence and made appropriate conclusions. Failures made the process of study more controlled and made me experienced. The necessity to find an error or shortcomings in learning sharpens oneâs attention, improves imagination, and enables one to obtain more critical and objective arguments during the course. Therefore, I have ownership of learning. To gain knowledge in macroeconomic conditions and understand the influence of global changes on the domestic perception of a country, I enrich my experience with obtained or new knowledge that would be a great contribution to my ownership of learning.
To sum up, Turkey is a beneficial country for investment due to its internal strengths and market perspective opportunities. Government support and international trade have stood up for rapid economic growth. The creation of favorable conditions for investment was only a step moving Turkey forward to economic development at the international level. Obtained knowledge and skills determined by my level of professional characteristics and the degree of my ownership of learning.