1. The University of Economics in Katowice/Poland FOREIGN DIRECT INVESTMENTS in Turkey FDI

2. The University of Economics in Katowice/Poland Part Three THE STRATEGIC ANALYSIS SWOT Intensive Programme Seminar of teachers and students 1st-13th May 2006 HONIM / Brussels

3. The University of Economics in Katowice/Poland Authors: Anna Brzęska Anna Gandor Edyta Tyc Artur Barski Sławomir Czech Session led by: PhD Joanna Czech-Rogosz

4. What should Turkey do or change in the field of FDI to take advantage of joining of the European Union? ????????????????????????????????? ???????????????????????

5. THE RESEARCH METHODOLOGY SWOT

6. THE PURPOSE

7. THE STRATEGIC ANALYSIS INTERIORSURROUNDINGS Strengths Weaknesses Opportunities Threats

8. SWOT Analysis SWOT Analysis (1) 012 3 Very weak connection Very strong connection

9. SWOT Analysis (2) an example

10. SWOT Analysis (3)

11. Strategy implementation What to do to gain the goals and improve the situation?

12. TURKEY FDI – SWOT ANALYSIS

13. THE GOALS 1.Is Turkey an attractive country for the FDI country for the FDI 2. Does Turkey take advantage of the FDI of the FDI ? ?

14. Strenghts(27) Weaknesses(27) Opportunities(17) Threats(20)

15. The swot analysis results DOMINATION OF THE AGGRESSIVE STRATEGY AGGRESSIVE STRATEGY

16. Turkey should take immediate actions based on main strenghts... 1. 1.High tourist attractiveness of the Turkey 2. 2.Low employers total payroll costs 3. 3.Special Zones for investors 4. 4.High potential in the fields of maritime and railroad transportation 5. 5.Continuation of the structural reforms process 6. 6.Wide range of the financial institutions 7. 7.Low costs of living 8. 8.Low tax share in the GDP

17. The strengths should be reinforced in order to take the advantage of the main opportunities... 1. 1.Companies relocation tendecy in the EU 2. 2.Possibility of using the EU funds by Turkey 3. 3.Advanced telecommunication technology development 4. 4.Stability of the EU market 5. 5.Investors demand for high quality labor 6. 6.Strong relations of cooperation between Turkey and Asian countries 7. 7.Structural changes in the economy 8. 8.Increasing interest in Turkey as a tourist destination

18. A HIGH POSITION OF THE COMPETITIVE STRATEGY COMPETITIVE STRATEGY

19. Turkey should be aware of the main threats which hinder exploiting the strenghts... 1. 1.Tough competition among the EU countries for attracting investments 2. 2.Not joining the European Union 3. 3.Negative stereotypes and opinions about Turkish people in the EU 4. 4.Possible dominant position of an investor in the host country

20. CAUTION! DANGEROUS WEAKNESSES 1. 1.Cultural and religious differences between Turkey and other UE countries 2. 2.Breaking human rights in Turkey 3. 3.Poor foreign investments promotion

21. The suggestions

22. 1. 1.Prepare a professional investment background for European investors that shall highlight the Turkish advantages 2. 2.Provide FDI encouraging legislation 3. 3.Set up a Foreign Investment Promotion Agency in order to encourage potential foreign investors 4. 4.Promote free market and privatization Economic promotion

23. Education 1. 1.Maintain the high-quality level of high education 2. 2.Put an impact on IT and advanced technology teaching 3. 3.Promote the knowledge about Turkey in the European Union by students (Turkeys week) 4. 4.Strengthen the exchange of students 5. 5.Introduce a new subject in Turkish schools concerning European culture

24. 1. 1.Stimulate the domestic companies activity 2. 2.Maintain low employers total payroll costs 3. 3.Invest in technological and social infrastructure 4. Promote Turkey as a tourist destination country Domestic economy

25. 1. 1.Maintain political and economic stability 2. 2.Reduce bureaucracy, fight against corruption 3. 3.Promote high-quality legislation 4. 4.Simplify the tax system 5. 5.Reduce social security Politics

26. Turkish strategy motto HEALTH, NOT WEALTH

27. Thank you for your attention!! Have a nice day!