WHY Turkish Firms Should Compete in America PRESENTED BY TACCI-MIDWEST OF CHICAGO ATAKAN ARICA

Agenda 2Atakan Arica TACCI-Midwest 2009 Why USA Business Climate Must do Fundamentals General three prong Strategy Current business climate in USA New trends in developing countries and the world 4/7/09

Why US? 4/7/09Atakan Arica TACCI-Midwest Geography & Size

Buying Power PPP 4/7/09Atakan Arica TACCI-Midwest Current GDP power of USA: $14 Trillion annual output, $48,000 PPP

GDP per State 4/7/09Atakan Arica TACCI-Midwest Turkey’s GDP Output is very similar to Washington State

Midwestern States 4/7/09Atakan Arica TACCI-Midwest TACCI-Midwest captures 12 states including Illinois, Indiana, Michigan, Ohio, Iowa, Minnesota, Missouri, Kansas, Nebraska, North Dakota, South Dakota & Wisconsin

US is Still Growing 4/7/09Atakan Arica TACCI-Midwest 20097

World Growth Rates & North America & South America 4/7/09Atakan Arica TACCI-Midwest GDP Real output for the world Energy sector included

Comparative Data 4/7/09Atakan Arica TACCI-Midwest US is still the largest Economy in the world by far

Comparative data 4/7/09Atakan Arica TACCI-Midwest

Other reasons 4/7/09Atakan Arica TACCI-Midwest World’s largest open market Great competition----  Everyone is here. Operational Excellence efforts Mature Market----  Requires a general growth strategy, Marketing & Brand Strategy Different than Europe, Middle-East & Asia If you can compete in this market, you can compete everywhere else because of the demanding customers.

Business Climate 4/7/09Atakan Arica TACCI-Midwest Requires Commitment…Long term Start small and do your homework Strategy & Planning Requirements It is very favorable for Foreign Companies

Worlds largest Import Market 4/7/09Atakan Arica TACCI-Midwest US Imports in 2007: $2Trillion, Exports $1.2Trillion

Market Opportunities in USA 4/7/09Atakan Arica TACCI-Midwest Retail trade sector potential in 2010 is $5.1 Trillion….

Turkish Products IN USA 4/7/09Atakan Arica TACCI-Midwest Sectors and Products Turkish Exporters have competitive advantages - - jewelry - copper and aluminum products, - pumps - air-conditioning equipment - machine tools - electrical equipment - home appliances - electrical and electronic cables - automotive components - agricultural products - processed foods - plastics - apparel, yarns - fabrics - home textiles - marble - ceramic tiles - sanitary ware - glassware

Fundamentals 4/7/09Atakan Arica TACCI-Midwest LEGAL Contract Laws : Express and written Product Liability Laws: Warranties etc. ACCOUNTING Types of Corporations, in which states Federal Accounting Guidelines GAAP if you are reporting Taxes and repatriation of earnings LABOR LAWS Minimum Wage Discrimination Issues: Gender, Race, Age, Americans with Disabilities Act Proper documentation Unions if necessary

Fundamentals 4/7/09Atakan Arica TACCI-Midwest Understand the culture and the customers suppliers & vendors Hire experienced people in your field Market Research for your products and services Operation and Supply Chain Management Finally, after a certain amount of time, reassess and expand if necessary

Three Prong Strategy- Interconnected 4/7/09Atakan Arica TACCI-Midwest Political Strategies Business Strategies Cultural & Educational

4/7/09Atakan Arica TACCI-Midwest Teach about Turkish Products & Business Environment 2.Learn about the American Business Environment 3.Learn how to deal and connect with the top management Study in the same schools or hire talented people Learn how to negotiate Learn how they think & approach the issues Understand the decision making process

Business Strategies 4/7/09Atakan Arica TACCI-Midwest Become a member of a Chamber of Commerce and industry group 2.Attend business specific trade shows 3.Learn to follow through 4.Keep the utmost professionalism 5.Work only with reputable companies 6.Manufacturing and Service industry 7.Logistics strategy inbound and outbound 8.Use the services from your Commercial Attaches office 9.Technology transfer, Joint Venture, Licensing, Mergers & Acquisitions

Political Strategies 4/7/09Atakan Arica TACCI-Midwest Keep in constant contact with your Consul General Office 2.Know all your State and Local USA Representatives 3.Support Turkish lobbying efforts in conventional and unconventional ways 4.Explain & educate the importance of Turkey to all the other foreign nationals 5.Help draft legislation if necessary

Current State in US 4/7/09 Atakan Arica TACCI-Midwest Everyone is cutting back Shift from spending to saving. Remember 1998 Asian Crisis… Banks are still shaky but new TARP program will inject more money into the economy Great potential to buy companies and business Great labor force for work…cheaper & more qualified. Opportunities are all over.

Personal Disposable Income 4/7/09 Atakan Arica TACCI-Midwest Personal Disposable Income for 2010 is projected at $11.8Trillion

Shift In Globalization 4/7/09Atakan Arica TACCI-Midwest BRIC countries are expanding into western economies Indian TATA bought Jaguar from Ford & CORUS Steel in UK Chinese Companies expanding; Cherry & Geely Looking at Volvo Ulker bought Godiva… Shift from manufacturing to service industries IT and Medical Imaging, Accounting, Call centers, Medical Records Management Better opportunities for Turkey as well Q&A

Contacts in Chicago 4/7/09Atakan Arica TACCI-Midwest Turkish Consulate General Honorable Kenan IPEK, Turkish Consulate General 360 North Michigan Avenue, Suite #1405 Chicago, IL Tel: (312) ext 27 Fax: (312) Turkish Commercial Attachés Office Suleyman SOZERI, Turkish Commercial Attaché Office of the Commercial Attaché Turkish Consulate General 444 N. Michigan Ave., Ste 2930 Chicago, IL Tel: 1 (312) Fax: 1 (312) TACCI Midwest Turkish American Chamber of Commerce & Industry, Midwest Sevil KUTAY President 333 N. Michigan Avenue, Suite #932, Chicago, IL Cell: Tel: (direct) (office) Fax: