2.1.1 Change of Government
The change of government political environment in Turkey affects the business environment through the legislation and different regulations. Turkey has successfully carried out the structural reforms after the severe economic recession in 1999 – 2001. The reforms include market liberalization to promote foreign investment, privatization, agricultural reform, strengthen the banking system and fiscal discipline, monetary tightening policies to reduce inflation and a floating currency rates. Turkish government is creating new legislation to help the industry and different companies to grow and foreign investment to improve and make it better for Turkey as a national advantage.
With the advantages of free trade and investment policy, many economists said that while the money withdrawn from the major economies, investors are pouring money into Turkey-fastest growing economy in Europe. This will create the favorable condition for BreadTalk activity in Turkey market. Because, BreadTalk will be support of government and feel safety when doing business here.
2.1.2 Corruption
Corruption is one of the major factors that affect investment environment and hampers the investment attraction. In Turkish political system the existence of corruption as a pervasive, entrenched, and enduring problem has long been an “open secret”. These positive trends are reflected by the World Bank’s worldwide governance indicators, with Turkey scoring 57,9 on a 0 to 100 scale in terms of control of corruption compared to 42,9 in 2000 (World Bank, 2010a). However, despite these positive developments, other indicators suggest that the country remains confronted to challenges of rampant corruption, and weak enforcement of anti-corruption policies. Turkey performs below average in Transparency International’s 2011 Corruption Perceptions Index, with a score of 4,2 on a 0 (highly corrupt)