The Role of Financial Communication Under the Chaos Environment

Abstract

As globalization becomes a necessity for organizations to continue their sustainability and existence in the world, naturally their interdependencies to other economies also emerge. After the 2008 economic crisis, TEMSA, a Turkish family-owned company operating in the transportation industry, decided to expand its products and manufacturing plants to different regions. Egypt, for the time being, was geographically a well strategic location for TEMSA's long-term manufacturing plans. In 2011, when the Arab Spring broke out, TEMSA found itself in the middle of chaos, challenged by external political and economic decisions. This chapter focuses on the case study of TEMSA Global as they entered the Egyptian market with a foreign direct investment and managing chaos between the years 2011-2012. An interview was conducted with the management team on duty at the time to collect data. As a result, it was observed that TEMSA potentially had a chance to continue its operations in the Egyptian market if the Arabian Spring had not happened. Chaos is a potential enemy for FDIs as they seek stability.