The Economic Impact of Globalization on Turkey

As time went on, larger industries and businesses were developed such as, glass making operation, rolling mill and tin plate company, foundry, machine company, sawmill and lumber company, silk mill, iron works, concrete products company, machine products company, manufacture of vibratory material handing, equipment, dress making plant, specialties metal plant, coal mining. Agriculture and other activates were also larger industries such as, woolen mills, breweries, distilleries and tanneries” (Stephenson

Rapid economic growth is one thing we should avoid as this could lead to inflation which could result in recession or even worse situation. Inflation results in an increase in price which will make it difficult to predict future goods and service cost. Investments in the country will be lower causing the country to have even poorer economic growth (EconomicsHelp, n.d.). Unemployment is therefore an important factor as it will affect the economic

More specifically, import substituting industrialization became the most adopted economic development strategy in Turkey. However, there were some discontinuities between the state led import substituting industrialization in the 1930s and the adopted import substituting industrialization model during the 1960-1980 era. Although the economy policies after 1962 were placed in the planning basis with the development plans, these economic policies carried more different features than that of 1930s in terms of the distribution of the investments, the priorities of the sectors and the content of the industrialization. While the Muslim-Turkish bourgeoisie was weak to lead the economy in the 1930, the state took the responsibility of the industrialization, investing in the various sectors. On the hand other, the import substituting industrialization model during the 1960s and 1970s was led by the private

The improvements in transportation and technology, gave way to the transition from home production to factory, as the factory needed the new technology in order to make the production of products more efficient, which meant large machines that were too big to keep in a worker’s home, thus, increasing the population in cities.

Has Turkey adopted both Western and Islamic principles? Westernization is the social process of becoming familiar with or converting to the customs and practices of Western Civilization. It is the accepting of western ideas in the fields of science, technology, philosophy, and other social materialistic aspects of life. However, Islam is the submission to the will of God. Unlike westernization, Islam is a spiritual practice, therefore, has its own unique identity, culture, and principles of social life. Since the day of independence, Turkey has always aligned itself with the western world. Only until recently, under the Justice and development party led by Recep Erdogan Turkey is starting to practice and meddle in the affairs of the Middle East.

b. Ataturk modernized Turkey’s economy by instituting an industrial sector that produced glass, paper, textile, and cement. He based the industrial sector on the Soviet model in a five-year plan as a way to pave a direction for the state’s revolutionizing economy. By doing so, he was also able to modernize the agricultural sector with new training institutions and model farms.

These two factors have caused a severe economic recession in Turkey (ibid). In 2002, more than two million jobs in Turkey were lost and the economy shrunk by 9.4 percent (ibid). The 1991 Gulf War left Turkey with no leg to stand on. With an economy in crisis, refugee and trade problems, and the continued necessity of a strong military, Turkey's resources are being stretched thin. However, the U.S. has supported some efforts to aid Turkey. This may be seen as the United State's way of making up for the problems they have caused. Regardless of the intention, the U.S. has pushed for efforts that benefit Turkey.

region’s poor GDP growth, which was as low as 1.7% as of 2014. The issue at hand is further

During the last decade of the twentieth century, the word ‘globalization’ has become an increasingly prominent feature of political, social, and economic discussion in academic and policymaking circles, as well as in the media. The processes and outcomes of globalization drew attention and debates that had one thing in common. The research shows that nearly everyone agrees that globalization is a trend that is changing the face of the world, and as a result the world society lives in a more ‘globalized’ world. Nearly two and a half decades passed since 1990s, and studies have been conducted to examine the causes and consequences of globalization. Moreover, nearly every person experiences some type of globalization and can testify firsthand the effects it has on their life, society, and the state. The analysis of the effects that globalization dynamics have on the world society indicates that globalization has a significant positive impact via spreading opportunities and wealth across nations, stimulating innovation and productivity, enhancing the economic development of poorer countries, and helping to improve living standards.

Due to their location and labor force, Turkey has seen a steady rise in their economy in the last 7 years, nearing around 2% per year, with an increase in labor and employment soaring as well. For being seen as a developing economy, it seems that Turkey is on a lot of the

Turkey is the 18th largest economy body in the world, the 6th largest economy entity in Europe, GDP with $786 billion, GNI per capita with $10, 970, which belong Upper middle income country (World Bank, 2013). Service industry contributed approximately 64.9% for GDP, the industrial sector just over a quarter, agriculture was about 8.2% (CIA, 2014). Moreover, Turkey has a sustainable and steady growth after structural reforms and macroeconomic stabilization since 2001, Turkish economy is becoming diversified and export-oriented due to the large inflow of FDI (ibid). GDP is expected to grow by about 5% over the next five years, single-digit inflation rate will continue to decline (Invest in Turkey, 2014: 24).

Prior to the AKP, in 2001 Turkey experienced one of the most severe economic crises in its history. This crisis occurred because the Turkish government failed to take action in making appropriate policies and precautions. Luckily, the AKP regained stability in Turkey, and implemented changes in focus of foreign policy, politics, economy, and other key areas. These changes created a significant resilience against external shocks and other government emergencies. The AKP outcomes also launched a major growth period during the years of 2002 through 2007. This was one of the highest

Up to now the literature review has given an insight into the concept of globalization, and the understanding of several academics in the light of how this phenomenon developed over the years. It is then essential to cover what the economic benefits of globalization are, and how these may impact a sector or company. Most of the literature study’s that have been written on the economic benefits of globalization have been after 2006. The reason is because the studies used the globalization index which was created by Dreher (2006) then further developed by Dreher (2008) again. Many of the empirical studies used this index as indicator as a base to form their findings.

The concept of globalization has become a prevalent phenomenon in the past two decades because of the changes it has brought and the adoption of its strategies by multinational corporations or companies. The economic changes of globalization include the strengthening of economic inter-dependence, internationalization of production, and enhanced mobility of transnational corporations. On the other hand, trade liberalization, privatization, and deregulation are the ideological changes emanating from this concept.

In today’s world, with a few notable exceptions, nearly everyone in every region of the world has access to the same products, information and services. A long-distance relationship is no longer so distant, since each party involved in the relationship can communicate through Skype, Facebook or through any of the vast amount of social media available. A person in Easter Island, one of the most remote inhabited islands in the world, can go to the other side of the world and travel to Canada. An economic crisis in Argentina could affect the economic landscape in Brazil. A person in Chile or Peru can buy an Abercrombie and Fitch t-shirt because this transnational corporation decided to expand its market to developing countries, or as you might prefer, to emerging economies in South America. Although many of these examples might be trivial, these are the consequences of globalization.