PEST ANALYSIS

PEST Analysis

PEST Analysis

Introduction

The value of PEST Analysis is quite high for any country. PEST Analysis is conducted to assess the political, economic, social and technological factors of the country. This helps various economists in carrying out an economic planning for the whole organization. The two countries, selected for this assignment are India and Turkey. The economies of the two countries are growing at a rapid pace, and, their future economic outlook looks quite bright. After carrying out the PEST Analysis, than the retail market analysis, carried out of the two countries. The analysis of the retail market in two countries would help in assessing the market mechanisms that prevail in both countries. The household trend might face identification with the help of the retail market analysis. Therefore, the issues have relation to both India and Turkey will be discussed in detail.

PEST Analysis of Turkey

Following the Second World War, nations started to seek integration with each other in order to maintain strength against other countries in the world. Several organizations such as North Atlantic Treaty Organization, United Nations, the Council of Europe, and, the Organization for European Economic Cooperation got created. Turkey was among the members of these organizations. Having been an ally of the West and having had close relations with the West through the policies pursued, it was only natural for Turkey to pursue the goal of joining geographically the most convenient economic integration, the European Union, formed under the name of the European Economic Community in 1957 by six Western European countries. Turkey made its first application to join this Community in 1959, but it has not achieved its goal some 50 years later. However, it led Turkey to sign the Ankara Agreement also known as the Association Agreement in 1963 which foresaw a customs union between Turkey and the Community with an ultimate aim of full membership of Turkey. This was followed by signing the Additional Protocol in 1970 which explained how the customs union would be established. In light of the developments that occurred Turkey applied for full membership again in 1987, but got rejected again. In spite of the rejection, relations between Turkey and the EU intensified and developed. In 1995, the customs union between Turkey and the European Union was established (Gerald, 1991, 141).

According to the researcher in 2010, a customs union is one of the stages of economic integration and can be described as removal of customs tariffs and other trade barriers on trade, among member countries, and, the application of common customs tariffs to non-member countries. Economic integration refers to the abolishing of all trade barriers among the combined countries in order to increase their prosperity. It has four stages that are free trade area, customs union, orthodox market and economic union. In a free trade, area, member countries abolish customs tariffs among themselves; however a customs union also involves the common customs tariffs policy towards non-member countries. A common market establishes the third stage by providing ...