globalEDGE Newsletter
November 2005
Vol. 4 - Issue 6
Our featured country this month is Turkey.
Turkey is a land full of historic treasures from thirteen successive civilizations spanning 10,000 years. With its strategic location between major oil producing areas of the Middle East and the consumer markets in Europe, it is no wonder that this country is an emerging market. The country's location serves as an important outlet for Iraqi oil exports, and as a major shipping point between the Black and Mediterranean Seas. Also, Turkey sees potential for future Caspian Sea oil exports.
Turkey has come a long way since they endured a severe economic contraction in 2001 due to a devastating financial and currency crisis. Since 2001, Turkey has experienced rapid growth of consumer energy, which has increased net imports, but Turkey seems to be balancing the trade fairly well. During 2004, Turkey's real gross domestic product (GDP) grew by a rapid 8.9 percent, with an inflation rate of 8.6 percent. For 2005, real GDP growth is forecast at 5.6 percent, with inflation of 8.0 percent. Turkey seems to be handling its economy well, and it will be interesting to see how the country continues to develop. Also in 2005, Turkey ranked fifteenth on MSU-CIBER's Market Potential Indicators for Emerging Markets.
Learn more about Turkey on globalEDGE
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World Bank Warns of Bird Flu Cost
BBC News (November 3, 2005)
http://news.bbc.co.uk/1/hi/world/asia-pacific/4402000.stm
In a World Bank study of East Asian economic performance, the bird flu was recognized as a factor that is affecting growth in some areas. The World Bank had previously predicted that East Asian economic growth would slow in 2006, but the impact of a pandemic would cause a much greater decline. If a pandemic does break out, tourism, transport and retail sectors will all bear a loss. There have been, and will continue to be, meetings between regional leaders focused primarily on the topic of bird flu and how to prevent an outbreak. Since 2003, there have been more than 60 deaths accounted to bird flu, but experts agree that a pandemic could lead to several million human deaths.
Commerce Sends South Korea Across DMZ
The New York Times (October 31, 2005)
http://www.nytimes.com/2005/10/31/international/asia/31dmz.html?adxnnl=1&adxnnlx=1130954687-y5D1UPM78o0QTBpCytBFgw
The openings of a new road and a new railroad, built by South Korea, that extend north across the demilitarized zone (DMZ) indicate that South Korea is reaching out to North Korea like never before. Three years ago it took weeks of paperwork to cross the border, but with the new road and railroad, it will only be a matter of minutes. Officials expect that they will be stamping close to 1,500 South Korean passports a day at the new immigration building on the DMZ. Experts believe that South Korea took this big step because of China's strong relations with North Korea, and also because North Korea has cheaper labor. The two opposing countries are easing tensions and this will mark the first time since the Korean War that South Korean government officials will work full time in the North. (Free registration is required to view this article)
View more Media Updates on globalEDGE.
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Sizing the Emerging Global Labor Market
The McKinsey Quarterly (November 1, 2005)
http://www.mckinseyquarterly.com/article_page.aspx?ar=1635&L2=1&L3=106
The developing global labor market has practical implications for companies and countries alike. The problem is that executives and policy makers have little information and insight about this market, and therefore they run into problems when trying to make decisions about off-shoring. Executives understand that the more efficiently the emerging global market functions, the more value will be created for their companies by allocating resources economically. It must also be noted that some occupations are more amenable than others to relocate, and compared to the number of jobs that could go offshore, only a small number of jobs actually do. This could change very quickly as the supply of qualified workers is large and growing fast. (Free registration required to view this article)
The Arctic's New Gold Rush
BBC News (October 25, 2005)
http://news.bbc.co.uk/2/hi/business/4354036.stm
Competition for the North Pole is increasing as many scientists are predicting that the Arctic ice cover will thaw because of global warming. Many believe that the North Pole contains oil and other precious natural resources. The United States, Canada, Russia, Norway and Denmark have all laid claim to parts of the North Pole, with much of the Pole claimed by two or more countries. Presently, the United States uses a northern route across the North Pole for shipping, which could become more important if the ice cap melts, making the route more accessible. Ultimately, it will be a decision that the United Nations Commission on the Limits of the Continental Shelf will have to make and decide who will have ownership to the North Pole and the resources it contains.
View more Selected Articles on globalEDGE.
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A sample of some of our recently added sites:
EXIMTURK
http://www.eximturk.com
EXIMTURK provides trade leads that can be found by specifying a country, category, or date. The site provides a company directory where member companies are classified based on company name, country, and category. In addition, there is an online catalog, which is created by members, where they can show their products with pictures and detailed descriptions. In addition, a free registration entitles users to post trade leads. Overall, navigating through the site is very easy. Note: The site is also available in Turkish at http://www.turkticaret.net.
Category: Trade: Trade Leads
Country: Turkey
Outsourcing Central
http://www.outsourcingcentral.com/
The purpose of OutsourcingCentral.com is to help business decision-makers understand how to drive business performance through the use of outsourcing. It provides an educationally structured editorial package that includes an online magazine, premium articles, practice research, case studies, and webcasts. Please note only abstracts are free and complete articles are only accessible via subscription. They also have some research papers that they will send upon request.
Category: IB Topics: Outsourcing
China: China Council for the Promotion of International Trade (CCPIT)
http://app.ccpit.org/
CCPIT provides business information pertaining to the Chinese economy on topics like foreign trade, foreign investment, technical and service trade, and laws and regulations. Besides market surveys and credit reports, information on working and living in China can be found. This site is also available in Chinese.
Country: China
View more Recently Added Sites on globalEDGE.
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Featured Discussion: Turkey's Place within the Global Market
Turkey is noted by many to be an emerging market in the world, such as in MSU-CIBER's Market Potential Indicators for Emerging Markets. As an emerging market, Turkey is looking to secure foreign direct investment as it tries to create greater confidence in its economy for domestic and foreign investors. In addition, Turkey has recently entered talks with the European Union (EU), and has taken the first step to obtain membership to the organization after forty years of requesting membership. It is expected that if Turkey is admitted to the EU, that at least ten years will be needed to implement promised reforms and to adopt thousands of pages of European law. At present, public support for Turkey's entry has declined to around sixty percent of the current European population.
Do you believe that Turkey is an emerging market as many reports indicate? If so, why? If not, why not? Do you believe that Turkey will gain entry into the EU? Do you believe that Turkey should be part of the EU? Have you had any experience in terms of conducting business in or with companies in Turkey?
Join our online community to discuss this and many other current business topics!
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