Restrictions on Overseas Trade in Turkey Case Study

Restrictions on Overseas Trade in Turkey - caseful Study ExampleTurkey being a natural bridge between the old continents of Asia, Africa and Europe, has a vast scope of overseas trading. But anyeviate the government of Turkey plonk restrictions on overseas trade. (Fletcher, 2006)The investment climate of Turkey, that forms barriers for any outsider, whether large or small, domestic or foreign, cause problems that affect all economic sectors of the country, particularly the telecommunication sector. The major problems which agitate Turkeys economy are shortage of well functioning capital market, limited expertise in banking outline and technologically oriented companies, partial regulatory process that always intend to restrain new companies and buoy up existing companies, specially those belonging to bombastic rail line families of the country.Companies in Turkey both the cloak-and-dagger enterprises and public enterprises specially, suffer from corruption in various levels of the organizational hierarchy. The judicial system of the country, up to both(prenominal) extent, can be suspected to be influenced by external political and commercial mal forces. Growing personal and political relationship between government officials and business representatives form the basis of corruption, which appears to be the most serious problem biting up the economy of the country.Barriers in investment of the private sectors and the foreign companies in the markets in Turkey is also a matter of concern. The Bilateral Investment Treaty (BIT) between Turkey and United States of America came into force in May 1990. due(p) to liberal investment regime of turkey, foreign investors are provided with national treatment in the country. In Turkey companies possessing foreign capital are treated as local companies. Regardless of nationality, private sector investments are always hindered by the facts like political and economical uncertainty, lack of judicial stability, and unwa rranted bureaucracy, and high evaluate rate, unpredictable changes in legal and regulatory environment, fragile framework for corporate governance etc. All areas except finance and petroleum sectors are fully open to foreign participation. Though the petroleum and financial areas are open to the private sectors and foreign investors in Turkey, Special permission is required for the foreign companies to bear witness business in these sectors. (Lamb, 2006) Foreign share holders have restricted equity participation ratio, such as near about twenty percent in Broadcasting industry, forty nine percent in aviation, marine transportation and value added telecommunication services industries. Sometimes arbitrary legislative action to a lower place cut the rationale for the investments of the foreign companies committed to the Turkish market. International settlement of investment disputes between foreign investors and the state remain bonded by efforts of the government of turkey, follo wing the inscriptions mentioned in the Bilateral Investment Treaty (BIT) signed by both the concerned parties. For several years the government of Turkey was providing concessions in public services, to the private investors and specially the foreign investors. According to the