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20 Ocak 2013 Pazar

How Do the US Companies Affect US Economy?



‘’ How Do the US Companies Affect US Economy? ‘’

‘’ How do International Outsource and Foreign Direct Investment Affect US Economy? ‘’






Introduction
Economic aspects of globalization, financial flows, trade, technology exchange, outsource, foreign direct investment with the knowledge and the mobility of the workforce through the integration of world economies to each other can be defined as.

Economic globalization and the rapid worldwide spread of technology, goods and services cross-border transactions have become increasingly diverse. World Bank, IMF, WTO, GATT, organizations such as telecommunications, information and transportation technologies to make rapid advances and cross-border sales, which aims to reduce the cost to provide inexpensive sources of international companies, the main factors of economic globalization, the environment is prepared.

Economic sense, globalization is necessary to pay particular attention to two points. The first of these capital movements. Thanks to globalization capital flows has a great fluidity and it has been integrated into world financial markets to each other for the first time in history. The best example of financial markets is that the daily volume of more than $ 1.5 trillion. However, this great capital, changed hands rapidly, causing a decrease in the real economy is also increasingly shared. This is also the cause of decline in the shares allocated to production.

The second important point is that international companies. Although the number does not exceed several hundred in the 1970s, now numbers over 40,000 s to find the multi-national corporations, the global economy have become the most important pillar. Turnover of 200 major companies across the world, is more than a quarter of the entire world's economic activity, given the subject easier to understand how serious. General Motors' turnover reached more than Denmark's GNP.

Sum up, I would like to explain how many company type we have and what are they.

1. International Company: After moving to a country a strong central based management system, and settled in other countries trying to enter the company.
2. Multinational Company: Executives to be able to profit distributing company resources, regardless of the identity of the country, without distinction between domestic and foreign operating company.
3. Transnational Company: International business sense or can be passed beyond the limits of transnational and multinational enterprises, political, economic and even ideological boundaries that did not recognize, a multinational company with people from different nationalities such as the organization adopted and developed by the company management.
4. Supranationalism Company: There is no country was founded by an international agreement does not exist and, before the registration of an organization that is connected to this organization and control, and tax firm that was founded in this country, you will get held by the organization, the company will lose the nationality law.

Firstly, I should explain some definition. I would like start with ‘’ outsourcing ‘’ because it is the most popular one for American company. They like it because of more profit.  "The American Heritage Foundation," glossary "outsourcing" word "in some parts, such as motor vehicles used in the manufacture of products and services, in order to reduce costs, foreign suppliers or manufacturers to supply" is defined as.
Today, the 15-20% of total costs of service items is estimated. "Outsourcing" activities, corporate support units held marketing, human resources, accounting, purchasing, financing and service activities in many fields such as customer relationship management to be provided from outside, through the cost savings that have emerged in order to go.

Previously, "outsourcing" services through the purchases of the country, offering a relatively cheap labor region, were made. However, especially in information technologies (IT Services) as a result of the rapid growth opportunities offered by the U.S. firms in the country they previously carried overseas purchases of contracted service. For example, "Bank of America" company, an Indian company in India, previously made ​​their own units, transfer function of the software development for banking operations "offshore outsourcing" (cross-border outsourcing) is defined as.[1]

The main objective of the Multinational companies world-wide economic activity in a universal manner to maximize profit is to integrate and organize; global company an organic structure which is expected to each part of the service. Another reason for the Company's activities into multinational become the most important customer outside the company wants to watch. For example, Volkswagen decided to produce the famous vehicles in the U.S. and many German car parts maker, glass, frame material, brake assembly and parts for diesel injection pumps has led to establish a facility in the U.S. to produce. These one opposite because generally Americans brand establish factory or do outsource because of cheap labor and export the other country easy transportation with oversea countries. But this German brand is so they set up a factory for geographic and wants to watch customer in position. 

Benefits of Globalization on Multinational Enterprises

Five-way multi-national enterprises have shown benefits of globalization as a basis:
A. Speed: Globalization and the removal of walls between national markets, has given businesses greater speed. Thanks to globalization, multinational corporations have had a chance to enter different markets, different products constantly.

B. Reducing Costs: Decreasing the differences between markets, businesses provided great benefits in terms of reducing costs. The low-cost entry to the business standards of globalization, no matter where in the world, have had a chance to achieve. Globalization has also a decline in distribution costs. Points of distribution and manufacturing businesses that no longer make the minimum production costs.

C. Standardization: Globalization in the different national markets, combined with consumers by identifying a common denominator, for these segments led to the introduction of standard products and services. This multi-national businesses, in each national market were rescued from the obligation to respond to the needs of different audiences and different. For example, upper-income target audience of young consumers who choose to be a multinational enterprise, their partner's needs, tastes and preferences have the chance to make the production of goods and services for. In this way the audience will have some common characteristics and standardized according to this definition applies to everyone who will be able to deliver shared services.

D. Deployment Activities: Business, various activities according to the local advantages, has the chance for distributing the various geographic regions. After globalization, multinational corporations, receiving entries from any country of their production to another country, and sell their products elsewhere in the management of all of these functions have the chance to make another country. However, this distribution can be co-ordinate and co-ordination and integration is required to function without any problems.

E. Centralization: Centralization, as already mentioned provides co-ordination of activities which are necessary for the healthy operation of the act of distributing. Emerging technology is no longer a single center management can be made. Business activity spread over a geographical location that covers much of the country, even in terms of computers, video conferencing, internet, and so on. Technology provides the performance of management in a single headquarters.

In This Global Century Two Countries are so Popular for Outsourcing

First one is China. Capital of China is Beijing and this country population biggest force for business and it affects price number of population is 1.3 billion. Major Technical Centers are Beijing, Guangzhou and Shanghai. We can see details below:
Labor Pool: China's technical schools turn out 50,000 graduates annually, many of whom migrate west. Those who stay generally don't speak English.
Costs: IT salaries range from $3,000 to $8,000 annually. No real BPO competency.
Government: China's government has hampered growth due to trade policies and overregulation; intellectual property concerns linger. The hope is that these issues will evaporate as China blends into the World Trade Organization. 

Infrastructure: Infrastructure can be spotty outside major cities, but China is building networks, particularly telecommunications, almost as fast as the U.S.
Expertise: Transaction processing, low-end software development and maintenance.
Major U.S. Customers: HSBC, Microsoft.[2]
Second country is India. Capital of India is New Delhi and this country population is 1 billion.
Major Technical Centers are Bangalore, Chennai and New Delhi. We can see details below:

Labor Pool: India has many prestigious technical universities, but the Indian Institute of Technology stands apart as one of the world's best. India produces 75,000 IT graduates and 2 million English-speaking graduates’ annually. 

Costs: Labor costs have crept upward over the years but have been offset by falling telecom rates. Typical salaries range from $5,000 to $12,000 for technical staff, while back-office salaries range from $3,500 to $7,500. 

Government: Outsourcing is so ingrained in the fabric here that the Indian government has a national minister specifically for IT. The government favors IT foreign ownership and imposes no export taxes.
Infrastructure: With redundant telecom and utility infrastructure, there is very good reliability within India's special IT parks. Reliability can be spotty outside the parks or in more remote areas.
Expertise: Application development, maintenance, call centers, financial processing. Experts see India becoming a hotbed for more critical analytical jobs.
Major U.S. Customers: Citigroup, GE Capital and American Express have a very large presence and have set up their own centers here.[3]

10 Top Outsourcing Countries
1          India  
2          Indonesia       
3          China 
4          Bulgaria         
5          Philippines     
6          Jordan 6.2     
7          Singapore       
8          Thailand         
9          Lithuania       
10        Egypt             
10        Malaysia
12        Estonia           
14        Chile  
15        Hungary         
16        Poland
17        Czech Republic         
18        Ukraine          
19        Romania        
20        Latvia 

India, China and Russia and the Philippines are the most conspicuous examples. For example, universities in India alone approximately 200,000 new graduates each year are in the field of information technologies. Founded in 1950 in India Institutes of Technology, leaning heavily on high-technology programs in this field and prepared to train qualified personnel, software technology parks in the late '80s (software technology parks) was established. However, on Obtain an adequate development of the Indian companies became more strategic international cooperation, to be the dominant language in English, with opportunities for educated and cheap labor diasporas connections, were the cornerstones of success today. Today Bangalore, the software (software) business, "Silicon Valley" has become compared to that.

Global Companies in China

China's socialist reforms and management approach in China, but also in the context of free market economy is organized to live with the terms of the new dual structure, but especially the poor and the unemployed population of large and also high in the world, re-reduction of production costs make production much cheaper to a ready market conditions to create a new and cheaper production. Although China did not show an equal distribution of the Chinese who want to harness the power of leverage to employ a part of many companies, large and small, to make their own behalf, and to make production, and to have a part to do contract manufacturing for other companies, who outsource their behalf have flocked to China for production. Motorola, General Motors Corp., Ford Motor Co., Toyota Motor Corp., Volkswagen AG, Audi Group, Renault Group, and so on. Many large investors to make investments in China in the world, carries out production. Thus, China, cheap labor, cheap raw material, capacity, and large market potential for new investment areas, the organizational structure of the global network organizations as part of the world, a large export ratio of world exports in statistics has been growing very fast. In fact, it is subject to export products, China's economy, not the geography of the Chinese economy that has been produced, mainly westerners, including businesses owned by other countries.

Apple Incorporated in China

iPhones are designed and marketed by Apple, one of the most innovative US companies. Apart from its software and product design, the production of iPhones primarily takes place outside the US.  Manufacturing iPhones involves nine companies, which are located in the PRC, the Republic of Korea (hereafter Korea), Japan, Germany, and the US.  The major producers and suppliers of iPhone parts and components include Toshiba, Samsung, Infineon, Broadcom, Numunyx, Murata, Dialog Semiconductor, Cirrius Logic, etc. All iPhone components produced by these companies are shipped to Foxconn, a company from Taipei, China located in Shenzhen, PRC, for assembly into final products and then exported to the US and the rest of the world. Table 1 lists major suppliers and costs of iPhone components and parts. The manufacturing process of iPhones illustrates how the global production network functions, why a developing country such as PRC can export high-tech goods at least according to the currently applied methodology for calculating trade statistic and why the country that invented the iPhone becomes an importer
China is with only the mounting base of Apple's multi-national production chain to increase the U.S. trade deficit cannot be said to be involved in many more. Apple's manufacturing processes are determined in the center of the United States, price policy and the relevant decisions are taken in the United States. One can take to resolve the imbalance of foreign trade in China's decision to allow the Yuan appreciation. However, even in case of appreciation of the Yuan, Apple may not allow the reflection of prices, exchange rate changes.

iPhone in the U.S. instead of China is said to increase the production cost of $ 65 per device. This difference in terms of hardware cost of $ 178.96 dollars portion is equivalent to only 6.5.
China's exports to the United States to appear as the products sold in China is completely against the U.S. and US-China trade balance in spite of ruin, TEPAV according to research, in 2009 China's exports to the U.S. $ 2 billion only 73 million dollars for iPhone part stems from the value added created in China.
Sum up, lasting for months at a time when the U.S. established manufacturing base in China, done in a few days. Most hardware manufacturers should improve the procurement process and to be there. Apple executives in the United States knows that this flexibility.

Labor costs are not one of the most important items in the expe
nse of electronic production. If Apple produces in the U.S. instead of China labor is only 65 dollars on the iPhone will make a difference. This is not a financial burden not afford Apple. Does not offer much cheaper labor in China as in the past as well. But labor is so cheap nowadays, the production managed to establish the chain of production of all the spare of the moment. China is now in another country, price can be eaten, but fast and flexible production with the 'know-how has become a country that is not easy. Technology companies to establish production facilities in the United States for the introduction of overseas sales tax exemption would create the source said. Tax exemption can only provide additional revenue to Apple $ 8.2 billion.

Finally, I want to mention about how China effects US employment. Because I told generally in a good way but this report from: “Unfair China Trade Costs Local Jobs” by Robert Scott of Economic Policy Institute. It is very important because of US citizens lost job for Global American Companies use cheap labor force and geography. For this reason recently years unemployment rate is dramatically increase.
The growing U.S. trade deficit with China has cost jobs in every one of the nation’s congressional districts, the study reported, including the District of Columbia and Puerto Rico. Between 2001 and 2010, the computer and electronic parts industry was hit the hardest, as more than 909,400 jobs were displaced. The rapidly growing number of imports of computer and electronic parts, including semiconductors and audio-video equipment, accounted for more than 44 percent of the $194 billion increase in the U.S. trade deficit with China during that time.[4]

The report cited other industrial sectors hit hard due to the growth in the trade deficit with China between 2001 and 2010, including apparel and accessories (178,700 jobs), textile fabrics and products (92,300), fabricated metal products (123,900), plastic and rubber products (62,000), motor vehicles and parts (49,300), and miscellaneous manufactured goods (119,700).

Outsourcing in India

Information and communication technology sector in India shows a remarkable improvement. Succeeded in creating a profitable business areas of the ICT sector in India and it is fast becoming a global supplier of software services, the most important continues to progress. India has banking, insurance, technology, telecommunications, engineering and multinational companies operating in areas such as business services that are popular global production chain, manage call centers, financial accounting, and database production has become an area they do. Because in India, trained professional workforce, low labor costs and economic reforms started free market for American and European companies. India today has become an outsourcing haven. Information technology and business process outsourcing, especially for Process led to the accumulation of deep experience.

Now the world's largest companies, accounting, back office operations, call center, software, biotechnology, medical tourism in India will request such services. The following 11 factors behind India are outsourcing being a haven described in the header.

Why company should choose India? We have so many reasons for that.

1. Science and technology competency with plenty of Human Resources
2. Low Labor Costs
3. English Proficiency
4. Geographical Advantages
5. Education and Training
6. Legal Environment
7. Quality Management
8. Software Technology Parks Development
9. Software Industry Institutions
10. Venture Capital Environment in India

U.S., Britain, Canada, France, especially in countries such as NASA and Microsoft technology and science, generating hundreds of Indian employees is confronted with many institutions. India, as an opportunity to evaluate the brain drain. Scientific institutions in Western countries, the knowhow and experience the rich know-how and technology transfer to India as the brains of winning are reversed.[5]

US will produce a large amount of human capital equipped with a great education, whereas this is not enough. Countries like India to join the world market and to reduce the production of American mathematics and science education system to be educated workforce at a time with an extreme has emerged to outsource jobs abroad. So the other reason is that companies outsource jobs abroad, the size and quality of accessible labor market.

Bank of America in India

Bank of America is the biggest bank in US. They have many branches in US. This is a bank it isn’t not like Apple that they can use outsourcing. Because Apple manufactures in China. This brand iphone, ipad, mac book, laptop broadly computer and smart phone. Thus they can reduce labor cost and they can use geographic factors for import and export. Bank of America in US so they don’t care geographic factors and it is finance sector they don’t manufacturer how can they outsource something.  But you forget something. Communication area which you forgot it. Because yes we use via internet our account and in US internet is the most popular but people don’t want write via e mail when they lost card or same problem. They want to speak so person. Call center sectors are growing last days. And Bank of America use two languages. First one is English and second one is Spanish. For English they use outsourcing in India. Theoretical you are in Ohio and you lost your card when you call the Bank of America number you are speaking smooth English but the person from India and he answers you in Mumbai via internet he help you like he is in states. Why has Bank of America chosen India? Firstly, India government 10-year tax exemption and exemption from customs duty is applied. The state provides tax relief in international communication. Telecom liberalization is going. Finding supports the activities of private investors. Up to 15% of fixed investments are encouraged. Creating free trade zones with tax exemption of State encourages the establishment of call centers here. Call centers of all kinds to move software, office duty free entry brings to the instrument. Annual $ 3,000 a year per person $ 1,000 state representatives winning customer support. Local governments are supporting the establishment of technology parks. Allows the establishment of advanced telecom infrastructure (Software Technology Parks).[6]  The first service in large amounts to outsource the software industry. Basic too big to easily transport data and work products of the first importance, and it to accomplish very complex communication equipment free. 1980 telecommunications equipment has dropped in price substantially. In this case, developing countries, with the software related trades only low-cost and low work has changed the concept of qualified jobs. Encoded in the physical environment the data can be transmitted through cables today. The amounts of outsourcing, has risen rapidly in volume. Even as India developing countries, complex, high value-added software products can be outsourced. India, superior in terms of cost in developed countries or the previously, for the production of India.

Indian speaks better English than Chinese. That is why US has chosen India. India's second largest English-speaking country after the United States. Have access to the source of many people who can speak English in India India is one of the advantages. In India, nearly 290 000-year engineering degree and diploma holders participating in the labor force. India's abundant, high quality and cost-effective services and large skilled labor source software, it amounts to global software clients make it attractive.
India each year, with the ability to produce many high-skilled employees is emerging as one of the best providers of IT resources. Multi-emphasis on science and mathematics education system, science and engineering graduates in the field results in too much. The quantitative dominance of English proficiency in concepts, coupled with allowing the benefits of the existing international IT demand caused the emergence of qualified employees. Government agencies such as Indian Institute of Technology and Indian Institute of Management offer qualified graduates each year.

How does outsourcing effects Indian economy?

The importance of the sector contributing significantly to export earnings appears more prominent. India is estimated more than 25% of export earnings. In 58% of export earnings sector in calculating the contribution of the Software, Business Process Outsourcing (BPOBusiness Process Outsourcing)’s contribution is calculated as 27%. The software and services sector, in India's total exports between 1996-2003 rose by 3% to 21% in the Indian economy is increasingly important. Indian IT sector, doubling the number of jobs added each year, the largest rise in employment creation, growth occurs at a rate of increase in the number of side jobs and high disposable incomes have contributed to the raising of a young consumer class. IT-based services in India, India's economy has a very large multiplier effect. Another direct effect on national income and employment, the sector also grow a variety of industries to the side, an increase in direct tax revenues and a rise in consumer spending due to significantly contribute to the high disposable income.
Today, in India, it is not the same as five years ago in India. Annual economic growths of 8% Indian businessmen seeking business in the U.S. are investigating ways of establishing a business in their own countries. Now with call centers in India are not only increasing the business community all over the world also offers enhanced services such as consulting and financial analysis. Intel, Microsoft, General Electric develops and sells technology with companies such as Pfizer, GlaxoSmithKline, Merck, and such a large and leading pharmaceutical companies, many of the tasks once done by Americans, Indians to take advantage of cheaper labor. For example, an Indian firm, Infosys, Fortune 500 companies to produce and maintain software performs nearly 300. India's leading outsourcing service sector is undoubtedly the most important reason for having a very large country with a population that speaks English. The other hand, governments in India in recent years, outsourcing some of their facilities for the development of India strengthened its role as a pioneer in this field.

According to a survey conducted by the year 2010 the number of people in India, 2.3 million people, outsourcing jobs to run directly, indirectly, the number of people who work will be approximately 6.5 million people. According to a survey of this work is the same until 2010, India will be held around U.S. $ 60 billion in revenue to be obtained. The report in question until 2010, and IT services outsourcing in India is estimated that 44% of exports.[7]

On the other hand not only in California, in 2000 there were 314 819 and most of them are Indians working in the IT industry. However, these highly trained individuals with the rise in unemployment in the United States less than half the salary they received in the United States returned to their home countries. This situation has contributed significantly to the development of outsourcing in India.

Conclusion
Nowadays, continues to increase even more with each passing day, and the effects of
deepening process of globalization as a phenomenon to affect businesses and continues to direct. Compared to the process of globalization to local businesses, we can say that a different dimension in terms of multinational enterprises. From one perspective with the process of globalization, multinational enterprises are said to increase the requirements to return a structure, when viewed from the other one is seen to play an active role in the process of globalization, multinational enterprises themselves. This situation must be accepted as natural. Because the reach of multinational companies operating in the fields of economic size and diversity as a compelling factor in the process of globalization, multinational companies pushing into. Favorable for the process of globalization, a process that can be said that the multinational enterprises. The process of globalization with the increasing liberalization trends, pushes the borders between the countries are relatively more permeable structure. This situation particularly in developing countries is higher. This information is extremely important in terms of multinational enterprises, goods / services and capital transfers make it easier. Thus, multinational firms sourcing, capital transfers from foreign countries, and more importantly, they found opportunities to be able to easily transfer their profits to their home countries. In this respect, the process of globalization, multinational enterprises in the global market makes an even stronger position. For this reason, in this process as well as multinational corporations and the globalization process is affected by the globalization process and enhancing plays a role.

China accepted and established as market network organizations in the world process of globalization of production and other issues that should be taken into account, the differences in quality of products with the same brand and function of different parts of the world, different prices is presented. The company with the same brand, which is more experienced in producing a portion of production and can produce much higher quality 'businesses in developing countries' making, but the quality of production as the top of the other part of the standard that can produce a lot of products that caught no businesses in the country. This companies income level and living standard of quality products, especially in developed countries when selling to customers with high and low quality products with potential customers in less developed countries and markets offer more low-income and standard of living. Thus, the increased volume of quality through a variety of products and markets are taking place. In fact, even in the country of production, while sales of indigenous people, ‘they export goods’ sales with the introduction of the most obvious example of this are being performed. In this case, in fact "quality" is a lifestyle-shaped common.

Outsourcing, offers great opportunities for many developing countries. The most important of these opportunities is the creation the prestigious of employment opportunities for educated and young population. In addition, the services offered abroad in the country with knowledge and experience generated within the country also makes it possible to create new markets.

India, with high information and normally the U.S., Europe and Japan are expected to be a competitive advantage of IT and CT based Countries such as areas such as software and services based on the combination of cheap labor with advanced technology to upgrade the welfare of society and poverty in a collective business model does not in dribs and drabs gained the opportunity to a country. The most important thing to learn the success of India, even in the less developed a country's development, "new ideas" and "knowledge" played an important role in how to do.[8]

Borders between countries recent developments in international trade has become completely unimportant because almost all the advances in computer and communication technologies in the services sector operations started to be in a paperless environment. This situation does not change under normal circumstances, the rule of international free trade, subject to the competitive advantage as a result of shifting to countries with cheaper labor countries has resulted in expensive, and thus emerged as a phenomenon is the globalization of local services. Subject to political aspects, as well as the economic bears has become very popular recently. Countries who use the service outsourcing industry, as well as in countries engaged in various aspects are discussed and where this situation are discussed who's winning. As a result of the globalization of local services is considered as a global world economy, and it takes it a step further, and who makes these services possible to say that all countries come out profitable.


[1] The American Heritage College Dictionary-4th ed., 2004, Houghton Mifflin Company, Boston-New York, USA, page 989
[2] Forbes Magazine, Best Countries For Outsourcing  http://www.forbes.com/2003/08/21/cx_ld_bestcountrieslide_4.html
[3] Forbes Magazine, Best Countries For Outsourcing
[4] Ashish Arora&Alfonso Gambardella, The Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries, May 2004
[5] Rosenthal, M. (2004). Beyond Outsourcing: Sustainable Economic Growth in India: 3.        web.mit.edu/profit/India%20and%20Outsourcing%20Papers/India%20Trip%20'04%20Paper_Marjorie%20Rosenthal.doc. (12.03.2009).

[6] Kuruvilla, S. and Ranganathan, A. (2008). Economic Development Strategies And Macro- And Micro-Level Human Resources Policies: The Case Of India’s “Outsourcing” Industry: 8. digital common

[7]   http//:www.businessweekonline.com, “Is Outsourcing Becoming Outmoded?” by Bruce Nussbaum, September 20, 2004, erişim 15.12.2005
[8] UNCTAD (2004). World Investment Report 2004: The Shift Towards Services: 148. http://www.unctad.org/en/docs/wir2004_en.pdf (12.09.2008).

Summary of Akerlof's Article


The Market for Lemons article has a Nobel Price and written by George A. Akerlof.  The problem called as a lemon because troubled automobile car market in US common parlance is known as this kind of lemon cars. Automobile market and the concretization of the topic chosen for easy recognition.

Akerlof, assumed that the car market, four kinds: new, used ones, the good and the lemons. A new car, good or lemon may be used in the same situation applies for automobiles. Individuals, well- buy a new car without knowing or lemon. Akerlof, lemon thinks that the problem of similarity between the Gresham Law. Accordingly, most new cars are lemon, bad ones of cars to be expelled from the market means. But the lemon problem, a different level of knowledge about the car with both buyers and sellers, while the Gresham Law, both the buyer and the seller is able to distinguish between good money and bad money. Buyer and seller aren’t same situation. Seller has more information than buyer. Because who is the owner of good this person know own good how situation. If buyer chooses wrong one it is adverse selection. Last one is moral hazard. It means the two sides have different information in a certain relationship that refers to or not to have the same information. This is a difficult element to the one with the right information, inaccurate or insufficient information for the one with the element of weakness. Inequality of knowledge, the adoption of asymmetrical information, the assumptions about the behaviour of economic agents, market acceptance of efficiency in resource allocation affects the front of many an important conceptualization.

Lemon problem also occurs in the financial markets. Individuals with the potential recipient of the stock, the expected profits with the company expected a good profit with low risk for high and low unable to distinguish between a company and a high risk. In this case, the receiver, and this will be willing to pay an average price of a stock of quality. The price, poor quality, the company's stock price and good quality of the company's stock price will take place. If you have information of good quality and good company the company's executives that they were more aware of the receiver if they are unwilling to sell its shares in the average quality of a firm's stock price. The companies that agreed to sell its shares at this price would be bad quality companies. The receiver does not want to buy shares in companies for the bad quality of the stock market will not work effectively.

Asymmetric information, such as other markets is an important problem that can affect financial markets. Conditions of perfect competition, especially by breaking the problem of asymmetric information in financial markets, securities and adversely affect the functioning of credit markets. The presence of asymmetric information problem in the securities markets, effectively prevent the transfer of funds between savers and investors are. In this case, marketable securities, forcing companies to be the primary source of financing and equity financing by issuing, applying to companies that often is a method of funding. Problem of asymmetric information, experience an increased risk of non-payment to the cause of those who borrow on credit markets. To lenders, so this problem does not want to give credit to the market despite safety projects and a case of credit rationing occurs.

In the absence of information to be faced with the problem of lime asymmetric. If the buyers, distinguish between good and bad firms, good stock issued by companies, will purchase the full value of stocks and bonds. Thus, financial markets, the funds can deliver the most productive investment opportunities.

Theory and Practice of China





People's Republic of China pose a threat to the United States could become a power level and the poles of the many possible polar worlds would be the most important claims that have engaged in the academic community for a long time. On the issue this claim is more understandable in terms of making the camp a few important ideas, let's talk. One of them is a more aggressive attitude with every step taken by China's future to threaten the status quo following the rise in the future and the economy began to find expression in a military sense. On the other hand, the West China's progress will become increasingly integrated and that rate is a pacifist who expresses their opinion on the direction of the existing circles. Similarly, none of these options in the Chinese domestic politics, winning is losing power, we see that from time to time groups hailed the reforms of Deng and subsequent economic restructuring and similar circles close to the reformist movement in the camp, largely on the effectiveness of the second idea.

China, however, that the above-mentioned possibilities, and the threat to the U.S. public perception of effort or to create a new rising power of China as the characterization of the basic problems. Already been established and the strength of the PRC and East Asian politics and has already proven to be a regional power that the basic forces are ignored. Therefore, as a result of a sudden glow and glare is reflected as a force to be curious about which path to follow. China is to us a more realistic reading of history in East Asia during the Cold War between the US-USSR and the PRC of a triangle is already an active player in the Soviet 'step by step with the reduction in the power of leadership in the region shows that the step announced. China is a serious military threat against the United States even if the regional is for those hoping to keep in mind there are theoretical points.

One of these proposed land power and sea power while balancing the geopolitical structure of the schools, which would give birth to another of the stability of the neorealist school of two-pole systems. In 1975 the United States withdraw its forces from Thailand and the Philippines 1991'te particular, is very close relations with China and South Korea, Cambodia, Japan-based threats, even as close as possible to keep its relations with China as a result of the perception of the region due to terrestrial possible to say that the superiority in China. On the other hand, the United States, Singapore, Malaysia, Indonesia and Brunei are able to use facilities in which naval forces agreements with countries such as the domination of the sea is quite strong. Therefore, more adventurous of the two powers will threaten the dominance in their regions exhibit an attitude that such a move away from providing for their own success in terms of interests-even if it is possible to-date price wars in the land forces of domination is hardly surprising given the owner of the domination of the sea will be high.

On the other hand, Kenneth Waltz’s stability caused by the bipolarity argument that gained the most effective voice in the region not far from the tension of these two fundamental forces, but predicts serious conflict that the two forces would last a life as possible, so far away to confirm this attitude. So recently a Chinese regional power capable of maintaining the same density, the stability of not more than one exam is a serious economic power in East Asia and China, leaning on other continents can see that the effort to increase the effectiveness. U.S. unipolarity as a requirement of this process and to avoid aggressive discourse of regional powers will play a key role to continue the policy of giving freedom of movement.

8 Ocak 2013 Salı

History of Turkey's European Union Membership Process



* 1959
Turkey , at July of 31st, 1959 to European Economic Community (EEC) filed for a partnership.

* 1963
Perspective of full membership in the Customs Union and the European Economic Community, the Ankara Agreement (Partnership Agreement) and I. Financial Protocol was signed.

* 1970
Additional Protocol(Annexed protocol) and II. Financial Protocol signed in Brussels.

* 1973
Explaining how to set up the Customs Union’s ‘’ Additional Protocol ‘’ entered into force.

* 1980
Following the September 12nd military coup stop relations between Turkey and the European Economic Community (EEC).

* 1987
Turkey, on April 14, has made application for full membership of the European Economic Community (EEC).

* 1996
Between Turkey and the The European Union (EU) "Customs Union" came into force as of January 1st.

* 1997
Grant candidate status to Turkey at the Luxembourg summit of The European Union (EU) leaders in December. Political relations were stopped by Turkey.

* 1998
The European Commission published a progress first report on Turkey.

* 1999
Council of Europe, the Helsinki Summit in December, gave the status of candidate country for EU membership to Turkey.

* 2001
European Council on March of 8th that the road map for Turkey's The European Union (EU) accession process The European Union (EU) - Turkey Accession Partnership Document was adopted.

* 2004
On December 17th of the Council of the European Union, took the decision to start membership negotiations with Turkey.

* 2005
On October 3rd , Turkey's The European Union (EU) accession negotiations  and Screening Process began officially. Negotiation Framework Document was adopted.

* 2006
The European Union (EU)  have blocked Turkey talks with 8 titles. Because Turkey didn't  implement Customs Union  to new member Cyprus.

* 2007
Referendum on the constitutional obligation to provide input on the for new The European Union (EU) members. And France, who has made the five - tuple associated with full membership negotiation was blocked.

* 2010
From June 2010, Turkey has 35 title and 13 of them have started negotiations and 1 of them are temporarily stopped.


Negotiation Process


* 2005
The first phase of the negotiation process started on 3 October 2005 be referred to as the screening process, on 20 October 2005 "Science and Research" chapter of started, 11-13 October 2006, "Judiciary and Fundamental Rights" chapter in the bilateral screening meeting has ended.

* 2006
During the screening process as a continuation of the Austrian EU Presidency on 12 June 2006 "Science and Research" chapter of negotiations have been opened and provisionally closed the same day.

In December 2006 the EU by 8 topics ("Free Movement of Goods", "Right of establishment and freedom to provide services", "Agriculture and Rural Development", "Customs Union", "Foreign Affairs", "fishing", "Financial Services", "Transportation ") of their obligations under the Customs Union has been suspended due to failure to follow against South Cyprus. The other decision that the European Council in December 2006 that Turkey open its ports and airports in South Cyprus, the issue of a temporary shutdown criterion is that all the titles.

* 2007
During the first half of the Germany presidency of the Year "Enterprise and Industrial Policy" and "Statistics" and "Financial Control" opened negotiations with headings.

During the Portuguese presidency in the second half of 2007 "Trans-European Networks", "Consumer and Health Protection" was opened for negotiation topics.

Within this year, "Economic and Monetary Policy", "Agriculture and Rural Development", "Regional Policy and Coordination of Structural Instruments", "Institutions" and "Financial and Budgetary Provisions" titles because they are directly related to membership in France has been blocked on appeal.

* 2008
During the Slovenian Presidency in the first half of 2008, "Company Law" and "Intellectual Property Law" was opened for negotiation topics.

During the French Presidency in the second half of the year, "Information Society and Media" and "Free movement of capital" was opened for negotiation topics.

* 2009
Czech Republic presidency, "Taxation" section was opened for negotiation.

During the Swedish Presidency in the second half of the year, "Environment" section was opened for negotiation.

* 2010

Spanish presidency in the first half of the year, "Food Safety, Veterinary and Plant Health" heading was opened for negotiation.


Perspectives for the coming period:

Expected to open in the next short period of negotiations as a priority headings "Public Procurement", "Social Policy and Employment", "Competition Policy" and "Other Issues" is. The remaining titles in order to open a portion of the opening criteria are met, the political reason of barriers to discussion of topics in the political path must be removed or blocked. At first, "Agriculture and Rural Development", including the removal of some of the topics open in both technical and political barriers to the fulfillment of the criteria depends on the opening.

Internal Dimension

Meaning in terms of compliance with The European Union (EU), Turkey is to achieve better living conditions. The EU accession process, justice, education, health, environment, investment environment, foreign trade, competition and a wide range such as this, requires that the reforms necessary for Turkey. That is completely in line with Turkey's national interests, including developments in process. National extraction, this process is not only economically, politically and socially in the form of a reform process to define and carry out a parallel process of a successful negotiation. Stability provided by the The European Union (EU) accession process in terms of opening the way for foreign investments in the economy, taking into account the apparent target, a high growth rate and a short time to stabilize the purchasing power parity, which corresponds to half the The European Union (EU) average of at least one must capture the level of national income per capita.

Under this perspective, Turkey, 1999 at the Helsinki Summit in December, after having obtained the status of The European Union (EU) candidate countries political and economic reform process entered an irreversible path and has achieved significant gains. Governments that are on duty throughout the process, albeit at a variable life have undergone such reforms. With the start of accession negotiations in 2005, the most serious stage of the accession process has been entered.

Turkey within the framework of the The European Union (EU)'s budgetary and institutional arrangements appear to be the most reasonable date in 2014, wants to become a member, are required to complete negotiations by 2012. In the country for the years 2011 and 2012 parliamentary and presidential elections to be taken into account if the future of the legal and administrative compliance with the equivalent period of work ahead of us thought for the less time you will need to consider when we left. Which is currently not open for negotiation and discussion, and especially difficult if we take into account long-pass timing problem topics will be revealed to serious thought.

Discussion of these topics in relation to ongoing and is expected to start discussing the arrangements stipulated in the National Programme will be applied. However, the legal regulations of the National Programme, the realization rate is extremely low.

External Dimension

On the other hand, the central countries of Europe member states to the The European Union (EU) enlargement and the transfer of powers to Brussels in the range of politicians in power against the other candidate countries, Turkey's new challenges that have not reached the agenda be removed.

The European Union (EU) currently is in evolution. Within The European Union (EU), global vision is of a political perspective, or withdrawn, the "old Europe" mentality is not certain to rise dominant. EU, today, global economic competitiveness, trying to overcome the problems of the areas of institutional reform and political integration, on the other hand, keep step with globalization, and also to delay Turkey's membership process in some member states, led a group working to slow down the observed change in The European Union (EU). Turkey  towards a better democracy, more competitive economy and a strong community with a demographic structure as the strong, the EU should follow closely the evolution. We're ready for membership, The European Union (EU) must be ready.

The European Union (EU)'s agenda and to contribute to discussions on the future of the multilateral strategic, close to the EU Institutions to Cooperate on the idea, and in this way become a party contributing to The European Union (EU) agenda is important. Politics, the fundamental solution of the problems and the most important driving force in this direction that the economic growth and global competitiveness policies and focus on Strategies to produce a solution.