Benefits & Difficulties Of Choosing A Location Essay


Discuss about the Benefits and Difficulties of Choosing a Location.



The report discusses about further business expansion in either Northern Ireland or Turkey. There is further discussion about both the countries to understand which country offers the most viable option for expansion. Thus, based on the discussion, one can choose a particular country to understand the benefits and difficulties for further business growth. There is also discussion about the cost incurred for expansion.

Northern Ireland vs. Turkey

However, if there is a comparison between Northern Ireland and Turkey for further business expansion then Turkey offers long- term scopes compared to Northern Ireland. This is because, Turkey is undergoing major transformation in terms of expanding economy, excellent geographical position, increasing middle class consumers, rapid growing banking sector and an enhanced enthusiasm of the entrepreneurial class. Compared to this, Northern Ireland has been the most disadvantaged region in United Kingdom in terms of attractive growth. The reason is the investors believing in low operational cost and trying to take advantage of the lowest wage rate in spite of the fact of the workforce being highly educated.

Benefits of Business Expansion in Turkey:

The growing market of Turkey has therefore encouraged more than 1000 American firms to make an entry. The constant movement of the Republic of Turkey towards the membership of European Union has enabled it in the adoption of European business standards and regulations thus providing it with easier means to conduct business (Bu?ra and Sava?kan 2014). There have been reforms that have strengthened and stabilized the economy further and enabled foreign investment. This led to the demand for not only improved capital investments but also new products and services. Turkey also has large number of market opportunities in terms of competitive and qualified labor force, infrastructure, reformist and liberal investment climate and lower incentives and taxes. Moreover, the country is located centrally and caters to a large domestic market.

Challenges of Business Expansion in Turkey:

However, Turkey also has certain challenges on offer to a business that plans for further expansion. Although business can start in only about six days but what becomes difficult are the procedures followed in order to navigate oversees firm. The companies planning for business expansion made to deposit a certain portion of their capital to Competition Authority account on execution of the articles of association (Alp et al. 2012). Further, there is also the need to file a form of incorporation notice, having a notary certification for the legal books and then do a follow up activity with the tax office on receiving the commercial registry notification. There are however other challenges that can cause hindrance for business expansion. These includes complex bureaucracy, turbulent politics, regional instability , various terms and conditions in the government contracts, market access barriers in certain sectors and week judicial system.

Cost: Infrastructure

Initiating a business is taking care of various costs related to infrastructure. These include labor cost, equipment cost, taking care of energy and telecommunications infrastructure. One must also consider the cost for transportation.

Figure: Labor Cost

Source: (Alp et al. 2012)

Web Access

There are also challenges in getting electrical connection that takes more than 70 days. Therefore, web access becomes a challenging task without electricity.

Figure 2: Cost of Electricity

Source: (Alp et al. 2012)

Education system

The cost of the education system depends on the various factors like course chosen, location and the fact whether the university funded by publicly or privately. For graduate programs of Turkish nationals in state university where the medium is Turkish, the cost may vary from100 – 200 USD and for foreign nationals it is between 300 – 600 USD. Similarly, the cost in university where the medium is English the Turkish national have to pay 200 – 300 USD whereas for foreign nationals the range varies from 600 – 900 USD. The cost for foundation universities ranges from 5.000 – 20.000 USD


The report therefore concludes in the light that though Turkey poses several challenges but it can be a better location in terms of further business opportunities. The benefits that Turkey offers are excessively effective in driving a business ahead.


Alp, H., Baskaya, Y.S., Kilinc, M. and Yuksel, C., 2012. Stylized facts for business cycles in Turkey. Central Bank of the Republic of Turkey. Working Paper, (12/02).

Bu?ra, A. and Sava?kan, O., 2014. New capitalism in Turkey: The relationship between politics, religion and business. Edward Elgar Publishing.

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