Population — practice question

Istanbul has the biggest population of any city in Turkey. By 2014, its population was around 14 times the 1955 figure. This may have been caused by stronger movement from rural districts into cities and by better healthcare. Istanbul also has the highest output per head among all regions in Turkey. Well-developed transport connections have helped Istanbul’s economy to expand. Along with strong land transport, Istanbul also has the 14th largest airport in the world when measured by passenger numbers. From Istanbul, access is available to a market worth $24 trillion and 1.5 billion people within a flight time of 4 hours. In addition to cheap international air travel to and from Istanbul, domestic air travel is also very inexpensive. This is most likely because of economies of scale. Competition in this sector is also intense, which affects prices and the quality of service. Expansion in transport industries, together with growth in financial services, has made a large contribution to Istanbul’s growth rate, as shown in Table 1.1. Foreign investment is going into Istanbul. Multinational companies (MNCs) are viewing Istanbul as an appealing place to invest because the cost of living is low. These MNCs affect employment, the level of technology and wages in Istanbul. However, there is concern that this confidence in the Turkish economy may not continue. Many firms have relied on borrowing to fund expansion. Higher interest rates around the world may make it more difficult for such firms to keep borrowing and also to win new customers. If worries about tourist safety in Turkey rise in the future, fewer people may book flights to Turkey.