Tesla in Turkey Essay Example | Topics and Well Written Essays - 1750 words

Tesla in Turkey - Essay Example The automotive industry is very important after the construction and tourism sectors (Saee 194). This industry creates the country’s highest multiplier. Furthermore, the industry intertwines with other industries such as marketing, fuel, finance, service and insurance. Any changes in the automotive industry are important to the country’s economy. The best approach for Tesla Motors in this country is to cooperate in the production and marketing fields. This increases the company’s capacity in the country’s automotive industry. The company enjoys more economic competition, innovations and investments for new models. In short, the automotive industry in Turkey is lucrative and with the right market entry strategies, Tesla Motors will enjoy significant profits. From a political and legal perspective, the country has liberalization (Nas & Mehmet 41). Turkey is a key supporter of liberal trade and investment policies that permit trade with countries in the Europ ean Union. The custom union of 1996 allowed Turkish firms to expand and become more successful internationally (Altug & Alpay 25). Turkish exports have continuously increased by 10% on an annual basis showing the trading potential of the country. The country charges sales tax, inclusive of VAT and exclusive consumer tax, on all motor vehicles. These taxes are higher compared to those other developed countries. The sales tax comprise of almost 19.2 percent to 117.1 percent. The country’s legislation on motor vehicle changes rapidly depending on changes in technology.