Developing Istanbul into a regional business hub
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Globalization has urged many big corporations to operate in foreign countries in order to access world markets and produce at lower costs. Many countries and cities compete with each other for becoming business hubs in their regions in order to benefit from huge FDI inflows. In this study we used the Value Net analysis to uncover Istanbul's position by the means of attracting foreign investors, and the SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis to examine Istanbul's capabilities, advantages, weaknesses, threats and opportunities on its way to become a regional business hub. We found that Istanbul has a great potential and many advantages to become a regional business hub for MNCs that want access to huge markets in Europe, Caucasia and the Middle East as well as the emerging market in Turkey itself. However, Istanbul also possesses several weaknesses and faces some threats causing the inward FDI flows remain at much lower than the desired levels. Political and economic stability is the biggest obstacle facing Turkey (and Istanbul) in terms of attracting foreign investors. We recommend that the governments should avoid populist policies and focus more on structural and economic reforms.
MBA Professional Report
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