Transcript Economy - Nicole Braun

Israel
Land of Spirituality, Diversity, and
Ingenuity
International Marketing
Presentation By: Nicole Braun, Aimee Loftus, & Irina
Zinnurova
A Little Land in the Center of the World
• Slightly larger that
Massachusetts
• Gateway between 3
continents Africa, Asia, &
Europe
• Wide Range of geological
identities from Mountains,
Deserts, Mediterranean Sea
Coast & More.
Picture from www.mapsofworld.com
• Centered in the Midst of
Arab world in the Middle
East.
Over 4000 Years of History
• Holy Land to three of the world’s largest religions:
Judaism, Islam, & Christianity
• Stems back to the “Father” literally and figuratively of the
Hebrew/Jewish people and founder of three religions
Abraham.
• Originally known as Canaan, named Israel after Abraham’s
grandson Jacob after GOD changed his name to Israel.
• Constantly shifted possession as the Jewish people were
subject to captivity by surrounding nations.
• After Fall of Rome in 70 a.d. Jewish people were scattered
and kicked out of Israel and Israel was renamed Palestinia
• Zionism and WWII paved the way for Jews to re-enter
Israel.
• 1948 Israel declares its statehood.
Understand Religion, Understand Israel
Photo from www.CBSNews.com
• Contains over 23 holy places scared to
3 religions and source of much
controversy with in Israel and the
Middle East.
• Each religion has its own courts backed
by government support.
• There is no separation of church and
state within Israel, but there is freedom
of religion.
• 76.4% of Israel is Jewish by which gives
rise to much of Israeli culture and
politics.
Jewish Influence on Israeli Culture
When traveling to Israel, below are just a few aspects require a good
understanding of the Jewish religion.
• People
– As the Jewish homeland, most
of the population of Israel is
immigrants who returned
from all corners of the earth.
Largest influx came as result
of Nazi concentration camps in
WWII.
– Additionally, the majority of
the population adheres to
Jewish religious beliefs and
laws
– All Jews are granted automatic
citizenship.
• Language
– Hebrew
• Nationalism
• The Flag
• Money
– Shekel
• Calendar & Time
– The beginning of the day
– Sabbath
– National holidays
• Food
– Kosher foods
• Dress
– Modesty
• Education
Where Religion Ends, Diversity Begins
• Influence from a mainly
immigrant population and its
location between 3 continents has
made Israel a melting pot of ideals.
• Israel, with only 60 years of
statehood, struggles to find an
identity and balance out its diverse
people.
• With the majority of Immigrants
from Western Europe and
America, Israel culture reflects
many aspects of that in the United
States and Europe.
• The United States has also
influenced Israeli culture and
politics as its biggest trade partner
and political Ally.
Photo from: www.ic-creations.com
Where American meets Israeli
• Israelis share many things in common with
much of the United States and Europe.
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Dress
English – 1st most spoken foreign language
Entertainment
Greetings
Communicating & Conversation
Many of the Ways Business is generally conducted.
• As countries of Immigrants, the United States
and Israel share much of the same ideals and
ways of life.
Other Interesting Facts
• When going to Israel, it is important to
remember the little things that people do
not always think about.
– Gift Giving
– Dining Etiquette
– Attitudes toward Foreigners
An Economy Built on Ingenuity
Israel’s small size means limited resources. Surrounded by
enemies on all sides, Israel has had to be revolutionary in its
industry to simply survive as a country.
• Advanced Agriculture
• 4.8% of Israeli GDP is spent
on R&D, World’s highest.
– Almost no importation,
despite limited water
• Highly Skilled Labor force
supply.
• Large service sector
– Exports that exceed Imports
comprising 50% of labor
• Transportation
force
• Advanced Healthcare and
• Large investment in
World recognized facilities
technological Sector
– Rose out of issues caused by
– 90% of R&D money
immigration shortly before
• Education emphasizing in
Israel’s statehood.
scientific and technological
skills.
Foreign Trade
• The economy is heavily
dependent on foreign trade
because of lack of natural
resources.
• The U.S.A. and EU are two largest
trading partners
• The top three export partners are
the U.S.A., Belgium, and China
• The top three import partners are
the U.S.A., Belgium, and Germany
• In April 2007
– Imports of goods totaled $4.0
billion
– Export of goods totaled $3.0
billion
– The trade deficit totaled $1.0
billion
Foreign Direct Investment
• “a positive and open attitude toward Foreign Direct Investment”
• Israeli government encourages investment by both domestic and
foreign companies:
– Investment incentives to industries that increase the countries exports
and create jobs
– Foreign investors do not have any restrictions in which sector to invest
except where there are defense consideration
– Provide R&D grants
– Offers largest tax reductions to foreign owned companies in
comparison with domestic owned
• Main tool to regulate foreign investors are Encouragement of
Capital Investment Law and the R&D Industrial Encouragement
Law
Reasons to do Business in Israel
1.
Economy
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Resilient, global-oriented, and advanced technology based
A developed mixed market
Highly competitive economy
Economy functions similar to Western Europe
2nd behind Canada in the number of foreign companies
traded
Number 17 out of 131 in its 2007 Global Competitive Index
Purchasing power in comparison with its neighbors:
Country
Egypt
Israel
Jordan
Lebanon
Syria
Per Capita GDP
$4,400
$22,300
$4,800
$5,300
$3,400
Reasons to do Business in Israel
2. Venture Capital
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Multinational companies like HP, Time Warner Inc.,
Sony, Cisco invest in Israel
In 2004 foreign funds represent 55% of total dollars
invested
The highest venture$/GDP rate in the world
The impressive entrepreneurial culture
Reasons to do Business in Israel
3. Language
 Official languages: Hebrew
and Arabic
 English, Russian, French are
widely spoken
 English is
• required language in most
schools
• Business language
 Public signs and street names
in Hebrew, Arabic, Russian,
and English
Reasons to do Business in Israel
4.
Constantly innovating
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One of the most technological advanced countries in the world
More engineers per capita than in other countries
The forefront of biomedical and technical innovation
The highest rate of R&D investment per GDP in the world
Israel’s 23 high-tech incubators support young companies
with 200 active projects and 735 graduated projects in the last
ten years
Microsoft, Motorola, Intel have R&D centers
Reasons to do Business in Israel
5. Incentives & Benefits
 Supportive business environment
 Different types of incentives:
• Conditional grants (up to 50%) of the Approved R&D budget
• Tax Benefits for an “Approved Enterprises” over a period of seven
years
• Protection of trademarks, patents, and other intellectual property
• Comprehensive legal protection of foreign companies
• Worldwide taxation and customs treaties
• Privatization of government companies
• Liberalization of foreign currency
• Tax holidays for up to ten years for foreign companies
Reasons to do Business in Israel
6. Trade Agreement
Reasons to do Business in Israel
7. Human Resources
 One of the most highly educated, motivate, and dynamic
workforces in the world that adapts itself to changes
 Highest percent of scientists and technicians per capita in the
world
 The highest ratios of universities degrees and academic
publications per capita
Reasons to do Business in Israel
Questions