Cyprus-Forum.com

[Jerry]

In spite of the optimistic headline in Zaman investment in Turkey is half the figure of a few years ago. Could it be that overseas investors really now believe that Turkey will not join the EU? Turkey's threats to annex the north could be about to backfire. The EU has put up with the illegal occupation pending a settlement but annexing part of a member State is a different matter and would surely lead to sanctions. Erdo may soon regret his hard line threats against the ROC.

Turkey may or may not genuinely wish to join the club but it has supported EU aspirations for economic gain, perhaps that country's true motives have now been revealed and its economy is about to take a tumble.

http://www.todayszaman.com/news-251727- ... -2010.html

[Kikapu]

In spite of the optimistic headline in Zaman investment in Turkey is half the figure of a few years ago. Could it be that overseas investors really now believe that Turkey will not join the EU? Turkey's threats to annex the north could be about to backfire. The EU has put up with the illegal occupation pending a settlement but annexing part of a member State is a different matter and would surely lead to sanctions. Erdo may soon regret his hard line threats against the ROC.

Turkey may or may not genuinely wish to join the club but it has supported EU aspirations for economic gain, perhaps that country's true motives have now been revealed and its economy is about to take a tumble.

http://www.todayszaman.com/news-251727- ... -2010.html

Tic Tock, Tic Tock, Tic Tock................................!

[bill cobbett]

Yep, silly bugger talked himself in to a corner last week, the culmination of months of blustery nationalist rhetoric.

Foreign investment can leave as quickly as it got there, when investors see no future in the EU for Turkey.

The only way out of the corner goes past CY.

[humanist]

Thanx Jerry. Interesting read. But Zaman isn't exactly a reputable source. So if they indicate a drop in foreign investment the problem may actually be more serious than what this tabloit reports. ......... I guess a lot is at stake in the investment world pending on the US default or not. Surely the Americans despite of which political party they support they wouldn't want to be known as the US that went under.

[Nikitas]

Yia sou re Antrea, long time no see!

Investment in Turkey is falling because the competitive advantage is diminishing as wages rise in Turkey and fall in other countries. This was expected and forecast by Turkish economists and I posted their comments in another thread.

A wider perspective on outsourcing and foreign manufacture was given by a US businessman interviewed on the BBC last year. He had said that by the time you add the shipping expenses, the management problems and warranty coverage, the price advantage is not that great. The advances in automation, especially CNC machining, have cut the margin even further. But above all, is the added value of that little sticker that says Made in USA. Expect to see more firms repatriating their operations from cut price countries in the near future.

[Piratis]

There is a global economic crisis and my guess is that this is what caused the decrease in investments and not anything else.

[supporttheunderdog]

Yia sou re Antrea, long time no see!

Investment in Turkey is falling because the competitive advantage is diminishing as wages rise in Turkey and fall in other countries. This was expected and forecast by Turkish economists and I posted their comments in another thread.

A wider perspective on outsourcing and foreign manufacture was given by a US businessman interviewed on the BBC last year. He had said that by the time you add the shipping expenses, the management problems and warranty coverage, the price advantage is not that great. The advances in automation, especially CNC machining, have cut the margin even further. But above all, is the added value of that little sticker that says Made in USA. Expect to see more firms repatriating their operations from cut price countries in the near future.

Shipping costs are definitely going up and eroding the advantages of cheaper labour elsewhere - ship's fuel alone has gone up in about a year by nearly 50%!!