INTERNATIONAL BUSINESS

FINAL PROJECT REPORT

TURKIYE

by Unknown Author is licensed under

Globalisation of Market and internationalization of firm:

Globalization's Impact on the Turkish Market and Firm
Internationalization Strategies.
The Turkish market is experiencing a wave of change for both local businesses and international
players, which is welcomed with the accelerating pace. "Globalization has reshaped TAŞ
markets." Let's dive into the impact:

The entry of globalization opened the doors to new opportunities, making it a bigger playground
with more companies. This has driven innovation and created new technologies that many
businesses now rely on.

With their rapidly increasing buying power, Turkish consumers are now able to buy a range of
global products and services. This transformation has therefore increased demand for premium,
more varied products and also forced companies to become global.

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Over time, economic integration has helped encourage trade and investment flows within the
region to drive growth & development.

To remain competitive, businesses have resorted to internationalization strategies such as foreign

direct investment (FDI), joint ventures, and export basket orientation. Businesses need strategic
alliances to remain in the competition.

With the rise of global trends, local businesses and consumer behaviour have not remained
untouched. E-commerce has grown and with new possibilities, innovation has accelerated due to
digitalization or technology adaptation.

Nevertheless, there are still challenges such as competition regulation and economic instability.
However, it also brings forward the positive side such as reaching new markets, technologies and
know-how.

In sum, globalization has thoroughly altered the Turkish market; for better and worse. To be
successful at the bottom of survival mode, businesses must go with global trends two steps ahead
to gain a foothold and innovate closing their way as much depth. Businesses that want to
compete globally will need internationalization strategies going forward.

The Cultural Environment of International Business:

Turkey's cultural environment is shaped by its unique position as a bridge between Europe and
Asia, blending Eastern and Western influences. This rich history and its Ottoman heritage have
created a society where tradition and modernity coexist. The country's secular identity is
contrasted with its predominantly Muslim population, where religion remains important in daily
life, yet there is a strong separation of church and state.

Family is at the core of Turkish society, and respect for elders is deeply valued. Hospitality is a
hallmark of Turkish culture; guests are often greeted with tea or coffee as a sign of welcome.
Building personal relationships is crucial in both social and business contexts. Trust and rapport
("güven") often form the basis of successful partnerships, and respect for authority is a
significant aspect of Turkish business culture.

Language also plays a key role. While Turkish is the official language, many educated Turks,
particularly in business, speak English. However, a basic understanding of Turkish is
appreciated, as Turks often use indirect communication to maintain harmony in social
interactions.

The divide between urban and rural Turkey is notable. Urban centres like Istanbul and Ankara
are cosmopolitan, with more liberal values, while rural areas tend to be more conservative.
Despite this, both settings place great importance on traditional customs, especially during

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religious festivals like Ramadan and Eid. Meanwhile, Turkish cuisine, with its diverse influences
from Central Asia, the Mediterranean, and the Middle East, is an essential part of social life,
where sharing meals strengthens bonds.

In all, Turkey’s cultural environment is a dynamic blend of history, tradition, and modernity.
Understanding these cultural nuances is key to engaging effectively in both personal and
business relationships in Turkey.

Ethics in International Business:

Turkey's unique geopolitical position, blending Eastern and Western influences, presents both
opportunities and challenges for international businesses. Understanding the cultural and ethical
landscape is key to successful operations in the country.

1. Cultural Context and Business Ethics

Turkey's blend of European and Asian traditions significantly shapes its business environment.
Personal relationships, trust (known as "güven"), and respect for hierarchy are central to
successful business dealings. These customs must be navigated carefully, especially by foreign
companies. However, one of the persistent challenges remains corruption. Despite efforts to
reduce bribery, it continues to affect interactions, particularly when dealing with government
agencies. Turkey's ranking of 101st in Transparency International’s 2023 Corruption Perceptions
Index highlights the ongoing concerns around integrity and ethical business conduct.

2. Legal and Regulatory Framework

From a regulatory standpoint, Turkey is a member of the OECD and the World Trade
Organization (WTO), and many Turkish companies comply with international business norms,
such as anti-bribery conventions and labour standards. Locally, the Turkish Commercial Code
and the Capital Markets Board (CMB) offer a framework for transparency and corporate
governance. However, inconsistent enforcement of these regulations can sometimes create
difficulties for foreign businesses.

3. Corporate Social Responsibility (CSR)

In recent years, Turkish companies, especially those engaged in international markets, have
become more conscious of corporate social responsibility (CSR). This has led to greater efforts
around environmental sustainability, improving working conditions, and community
engagement. International businesses, especially in sectors like textiles and manufacturing, often
push for higher CSR standards to meet global expectations, particularly concerning labour rights
and environmental sustainability.

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4. Challenges for Foreign Businesses

Political and economic fluctuations in Turkey can present substantial challenges for foreign
investors. Factors like currency volatility, unpredictable policy shifts, and bureaucratic hurdles
can complicate business operations. Despite these issues, Turkey remains an attractive
investment destination due to its strategic location and growing economy.

5. Global Supply Chains and Ethical Concerns

As a significant player in global supply chains, particularly in industries like textiles and
electronics, Turkey has faced scrutiny over labour conditions. Concerns about child labour and
poor working conditions in some sectors require international companies to ensure that their
supply chains meet ethical labour standards. Many businesses work closely with Turkish
suppliers to ensure compliance with global labour norms.

The Political Venture of Turkey:

Turkey has a political system with three main branches with a DEMOCRATIC state:

1. The Executive Branch: The president is the head of the state and the Prime minister is the
head of the government. The president is elected by the majority of votes for a five-year
term by the people of Turkey. The president has significant powers including appointing
his cabinet ministers, overseeing foreign policy and ordering the armed forces.
2. The Legislative Branch: The Grand National Assembly of Turkey elects 600 members for
a four-year term. The Grand National Assembly of Turkey approves the budget and is
responsible for other law and order amendments.
3. The Judicial Branch: The Judiciary is independent of the Executive and Legislative
branches. The constitutional court is the highest in all the country responsible for the
disputes between the government and the nationals.

Geopolitical Pressure:

Turkey is the only country situated on two continents with one half in Europe and the other half
in Asia. This creates geopolitical pressure on the country involved in regional conflicts and likely
faces challenges with its neighbouring countries throughout the time.

Secularism vs. Religion:

The tension between secularism and religious conservatism has been a recurring theme in
Turkish politics. The government's approach to balancing these two forces has influenced its
stability. (example of Tanzania, Muslim Christian).

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Turkey’s democracy in international business is associated with market economies and
capitalism which means that decisions are largely made by the market forces regarding demand
and supply.

1. Intellectual Property Rights Law: Turkey has a robust intellectual property rights regime
that protects patents, trademarks, copyrights, and industrial designs. This is essential for
international businesses seeking to protect their innovations and brand value in the
Turkish market.
2. Labor Laws: Turkish labour laws protect the rights of workers and regulate employment
relationships. These laws cover issues such as minimum wage, working hours, and labour
unions. International businesses must comply with Turkish labour laws and may need to
negotiate collective bargaining agreements with labour unions.

Legal System in Turkey:

1. Role of Islamic Law: Turkey is an Islamic state and with that, the government has
amended laws under Islam. While Islamic law is not the sole source of law in Turkey, it
does influence certain areas of the legal system, such as family law, inheritance, and
charitable endowments. The interpretation and application of Islamic law are subject to
the oversight of the Constitutional Court.
2. There are 2 main streams of court in Turkey:
 General courts consist of peace justice courts, high criminal courts, regional
courts and above all THE SUPREME COURT.
 Specialized courts consist of commercial courts, administrative courts, military
courts and constitutional courts.

Government intervention in International Business and Regional

Economic Integration:
The Turkish government, in this analogy, is like a savvy manager who steps in to help navigate
this busy marketplace. They might do things like:

Setting the Rules: Just like a manager might set guidelines for their staff, the Turkish government
creates regulations and policies that help Turkish businesses compete internationally. These rules
ensure that Turkish companies are on a level playing field and can protect their interests.

Negotiating Deals: Imagine the government as a negotiator who helps Turkish businesses strike
favourable deals with other countries. They might work on trade agreements that lower tariffs or
create better terms for exporting Turkish products, making it easier for businesses to thrive.

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Supporting Growth: Sometimes, the manager might offer support, like training or financial aid,
to help the local business grow. Similarly, the Turkish government provides support to businesses
through incentives, subsidies, or by investing in infrastructure that makes it easier for companies
to operate internationally.

Now, when it comes to regional economic integration, think of it as joining a cooperative with
other local business owners. This cooperative allows businesses to share resources, collaborate
on projects, and enjoy collective benefits.

For Turkey, regional economic integration means working closely with neighbouring countries
and regions to create a more interconnected and cooperative economic environment. This could
involve:

Collaborative Projects: Just like businesses in a cooperative might work together on joint
ventures, Turkey collaborates with neighbouring countries on projects that benefit everyone
involved, such as infrastructure developments or regional trade agreements.

Shared Resources: By integrating with regional economies, Turkey can access resources or
markets that might be more difficult to reach alone. It’s akin to sharing tools or expertise within
the cooperative to make everyone more successful.

Economic Stability: The cooperative helps stabilize the local economy by creating a more
predictable and stable environment. For Turkey, regional integration can lead to greater
economic stability and growth by reducing trade barriers and fostering economic partnerships.

In summary, the Turkish government’s intervention in international business is like having a

skilled manager who helps local businesses succeed in a bustling marketplace. Regional
economic integration is akin to joining a cooperative where businesses collaborate for mutual
benefit, creating a more connected and thriving regional economy.

Theories of International trade and investment in Turkey:

Talent abroad:
Turkey uses the theory of sending their talent abroad to achieve their required business and
international trade goals. This theory was adopted by countries founded in the 17 th century and
countries established in the 20th century such as Turkey and China. Turkey used this technique to
attract new tourists and to boost their international trade with all countries around the world.

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They introduced this theory in the late 1960s as a part of their GROW TURKEY initiative to
boost and comply with other major superpowers. This strategy is rooted in the historical practice
of sending ambassadors and representatives to foreign lands, but Turkey has adapted it to the
modern context of globalisation and international relations.

This theory selected major talents from the country and sent them to other countries representing
themselves as Turkish ambassadors to the world. For example:

Turkey sent their chefs to major European countries who had invented big dishes for the
world. For instance, take it as Italy. Italy invented pizza and in the late 1960s Italy only
used to have cheese or maybe margarita pizza which meant no other flavours were
introduced into Italy and the world. Turkey sent their premium chefs and experts to Italy
by introducing new flavours for pizza including chicken and beef along with Turkish
spices and their rich flavours.

This attracted a high demand for chicken and beef pizzas in the Italian market and
nationals became fond of such flavours. Later on, in the next decade, Turkey called back
their chefs from Italy and sent them to different countries around the world in different
continents. People from all other countries travelled to Turkey in bulk and big groups to
taste the flavours of pizza.

Along with this people and tourists visiting Turkey also increased their excitement of
visiting new places in Turkey and exploring different cities of Turkey which single-
handedly increased their tourism as well.

Theory of comparative advantage:

1. Industrialization and Diversification: The government has promoted industrialization and
diversification to reduce reliance on agriculture and increase the value-added content of
its exports. Turkey used advanced and future-based industrialization while increasing its
capacity to manufacture its equipment for all industries and improving the cost of goods
sold as exports.
2. Infrastructure Development: Investments in transportation and logistics infrastructure
have improved Turkey's connectivity with international markets. In the early 2000s, the
world was moving towards major changes such as infrastructure development with cities
like Dubai and Abu Dhabi, Turkey moved towards building infrastructure with the help of
local and cultural experts. Hence, promoting Turkish civil engineers, architects and their
cultural diversity.

Turkey’s financial stability impacts its international relations with all other neighbouring and
worldwide countries which assesses the country’s stability and their ability to gain more tourists

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and investment every year. Diversifying operations across different regions can help reduce the
impact of economic instability in Turkey.

The International Monetary and Financial Environment:

When we talk about international monetary movements, we're referring to the flow of money
between countries. For Turkey, this means dealing with things like foreign investment, loans
from international organizations, and currency exchange rates. If the global economy is doing
well, it's like having well-off guests who bring nice gifts and spend a lot, which is great for the
Turkish family. They might invest in Turkish businesses or buy Turkish products.

On the other hand, if the global economy hits a rough patch, these guests might become less
generous or even leave early. This can lead to challenges for Turkey, such as higher borrowing
costs or reduced investment. In this scenario, the Turkish family might have to adjust their plans,
maybe tighten their belts a bit or find new ways to make their household more resilient.

The international financial movements, such as the ebb and flow of capital and the decisions of
global financial institutions, are like the changing dynamics of these guests. Sometimes they
might bring in new opportunities for Turkey, like helping to fund major projects or improve
infrastructure. Other times, they might bring uncertainty or require Turkey to navigate complex
financial landscapes to stay on track.

So, in essence, international monetary and financial movements are like the ever-changing
dynamics of guests at the Turkish family's house. How well Turkey manages these visitors—by
adapting to their needs, planning, and making the most of the opportunities—can have a big
impact on its overall well-being and prosperity.

PRODUCT TO BE IMPORTED INTO TURKEY FROM PAKISTAN:

Himalayan Pink Salt:
Pakistan is known for its high-quality Himalayan pink salt, which has gained popularity
worldwide due to its unique flavour and health benefits. In Turkey, there is a growing demand for
gourmet and speciality food products, including Himalayan pink salt.

The potential demand for pink salt in Turkey can be evidenced by several factors:

1. Health and Wellness Trend: Turkish consumers are increasingly focused on health and
wellness, leading to a growing interest in natural and organic products. Himalayan pink salt is

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perceived as a healthier alternative to regular table salt due to its mineral content and lack of
additives.

2. Culinary Use: Turkish cuisine is diverse and renowned for its rich flavours. Himalayan pink
salt is valued by chefs and home cooks for its distinctive taste and ability to enhance the flavour
of dishes. The unique pink colour of the salt also adds visual appeal to culinary creations.

3. Gourmet Market: Turkey has a thriving gourmet food market, with consumers willing to pay a
premium for high-quality and speciality products. Himalayan pink salt, with its premium
positioning and health benefits, aligns well with the preferences of Turkish consumers seeking
unique and premium culinary ingredients.

4. Increasing Awareness: As consumers become more health-conscious and informed about the
benefits of natural products, there is a growing awareness of Himalayan pink salt and its
advantages over traditional table salt. This awareness drives the demand for pink salt as a
healthier and more natural seasoning option.

Considering these factors, there is a clear potential for a strong demand for pink salt in Turkey,
making it a promising market for exporting this speciality product from Pakistan. By capitalizing
on the health benefits, culinary appeal, and growing consumer awareness, we can position
Himalayan pink salt effectively in the Turkish market and meet the increasing demand for
premium gourmet products.

Turkish cuisine is renowned for its rich flavours, and the use of high-quality ingredients is highly
valued in Turkish cooking traditions. Himalayan pink salt, with its unique flavour profile and
natural mineral content, resonates with Turkish culinary culture.

Turkish consumers appreciate natural and organic products, emphasizing health and wellness in
their food choices. Himalayan pink salt, known for its purity and mineral richness, appeals to this
preference for wholesome and natural ingredients. The pink salt's lack of additives and its
perceived health benefits make it a desirable option for health-conscious consumers seeking to
enhance their dishes with a natural and flavorful seasoning.

Moreover, presentation and aesthetics play a significant role in Turkish cuisine. The distinctive
pink colour of Himalayan pink salt not only adds a unique visual element to dishes but also
aligns with the Turkish appreciation for visually appealing food. The cultural emphasis on the
overall sensory experience of dining, including taste, aroma, and presentation, makes Himalayan
pink salt a fitting choice for Turkish consumers who value both flavour and aesthetics in their
culinary endeavours.

By understanding and leveraging these cultural preferences and values, exporters can position
Himalayan pink salt effectively in the Turkish market, emphasizing its alignment with Turkish

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culinary traditions, health-conscious consumer preferences, and the cultural importance of high-
quality, visually appealing ingredients in Turkish cuisine.

Pink salt from Pakistan can have a competitive edge in the market for several reasons:

1. Quality and Authenticity: Pakistani Himalayan pink salt is renowned for its high quality and
authenticity. The salt is mined from the Khewra Salt Mine, one of the world's oldest and largest
salt mines, ensuring purity and mineral richness. Turkish consumers value authenticity and are
likely to prefer the genuine Himalayan pink salt from Pakistan over other varieties.

2. Health Benefits: Himalayan pink salt is perceived as a healthier alternative to regular table salt
due to its mineral content and lack of additives. In a market where health and wellness are
increasingly important to consumers, the health benefits associated with pink salt can be a
significant selling point, giving it a competitive advantage over other salt options.

3. Culinary Appeal: Turkish cuisine is known for its diverse and flavorful dishes. Himalayan pink
salt's unique taste and ability to enhance the flavours of food can be a strong selling point in a
market where culinary excellence is highly valued. Chefs and home cooks in Turkey may
appreciate the distinct flavour profile that pink salt adds to their dishes.

4. Premium Positioning: Himalayan pink salt is often positioned as a premium gourmet product
due to its unique colour, taste, and health benefits. In a market like Turkey, where consumers are
willing to pay a premium for high-quality and speciality food items, the premium positioning of
Pakistani Himalayan pink salt can give it a competitive edge and attract consumers looking for
unique and upscale culinary ingredients.

By emphasizing these factors and highlighting the quality, health benefits, culinary appeal, and
premium positioning of Pakistani Himalayan pink salt, exporters can establish a strong
competitive advantage in the Turkish market and differentiate their products from other salt
offerings available to consumers.

Importing Himalayan pink salt from Pakistan into Turkey, there are several regulatory
considerations to keep in mind.

1. Customs Regulations: Turkey has specific customs regulations governing the import of food
products, including salt. Importers need to comply with these regulations, which may include
documentation requirements, import duties, and inspection procedures. Ensuring compliance
with customs regulations is crucial to avoid delays or issues at the border.

2. Food Safety Standards: Turkish authorities enforce strict food safety standards to protect
public health. Importers of Himalayan pink salt need to ensure that the product meets Turkish

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food safety regulations, including labelling requirements, and permissible additives, Conducting
thorough quality control checks and providing necessary documentation on the product's safety
and quality is essential.

3. Certifications and Permits: Importing food products into Turkey often requires specific
certifications and permits. For Himalayan pink salt, exporters may need to obtain certifications
related to food safety, quality, and authenticity. Additionally, importers should verify if any
specific permits are needed for importing salt into Turkey and ensure that all necessary
documentation is in order before shipment.

4. Packaging and Labeling Requirements: Turkish regulations mandate certain packaging and
labelling requirements for food products. Importers must ensure that the packaging materials
used for Himalayan pink salt comply with Turkish standards and that the product labels contain
accurate information in Turkish, including ingredients, nutritional information, and expiration
dates.

VIDEO LINK:

https://drive.google.com/file/d/1A8DfJnhdEkOfOsKOlNLcgtT35QJejyVe/view?usp=drive_link

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