A Test Case in Turkey

by C. Skinner



This article is based on research related to American business enterprises, functioning in Turkey and it is concerned with the management problems of operating in such an economic setting. The production operations of the companies described were analyzed through interviews with the Turks and Americans involved, supplemented by study of various records and discussions with key individuals at the U.S. home offices. The seven companies followed a variety of approaches in setting up their Turkish operations. Excellent business opportunities exist in the economically retarded but highly populated parts of the world if the investing corporation is able to enter these markets in time. Because these countries believe they must industrialize to achieve economic growth, foreign investment early in their economic development usually is welcomed with favorable terms. But as much as outside funds are sought, strong nationalistic feelings typically close the doors or tighten the terms once the nucleus of a necessary industry has been formed. However, by going in early enough and with adequate preparation to operate in a relatively primitive economic setting, American business may find a chance to develop profitable operations that also serve the host country's needs.

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