Impacts of foreign direct investment on the Turkish economy and a sector analysis (automotive)

The Earth has passed over three globalization phase until today. The first was exploration of "New Earth" in 1492. The second was Industrial Revolution. Developed countries has passed mass production method and constituted colonies in the overseas countries for requirements of surplus raw materials and labor force by Industrial Revolution. Colonies also has meant new markets for surplus production. The third and the last globalization wave has been lived after 1970. Inconceivable improvements of on the intercommunication and communication facilities by courtesy of rapid developing technology, have returned The Earth as a global village. One of the important characteristics of the last globalization phase is that multinational corporations have started to affect of territorial sovereignty of nation states. This globalization conduct has got itself on the disintegration of Eastern Block in 1989. Volume of foreign direct investments which was carried by multinational corporations, exceeds over 1 trillion US $ annually. Turkey is share is no more than %1 of this world wide capital flows. Turkey reserved on average 1 billion US $ foreign investment per year up to year of 2003, but it can potentially get 20-30 billion US $ annually. Accompanied by the issuance of Foreign Direct Investment Law in the year of 2003, executed which for improving investment environment and started the negotiation with EU, has been increased foreign investment's interests and entrance of foreign direct investments reached nearly 10 billion US $ limit. Currently, Turkey is one of the most liberal country of the world for investment environment. The share of automotive industry is fairly too much, on the increase of exportation of companies with foreign capital as the year of 1999. Up to that year, companies with foreign capital which are aiming at effecting sale to domestic markets, have begun to export into various markets after they completed big and consistent investments which they have started in the year of 1998 in. This process of transformation which has eventuated in the sector and speeded up thoroughly after 2003, decisions which has been token by American, French and Japanese companies, have became effective. Today, the automotive industry is protecting its characteristic of to be a leading sector by 17 main companies and 190 related industries.