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IsraelPresentation by:Abhishek Das (02)Khitish Kakar (28)Ruchir Shukla (42)
Israel: Evolution as a Nation
Israel: Evolution as a Nation
Israel: Culture      • Heterogeneous      • Low – Context (Straight talk)      • Monochronic Time      • Low Power distanc...
Implications for MNE in IsraelPride in culture and history   Do not openly criticize                               Show in...
Implications for MNE in IsraelPace of Negotiation                Expect deals to be slowDecision Making: Individualistic  ...
Demographics Population         74,73,052   Jerusalem        7,47600   Urban population 92% Age Distribution Pop. growth r...
DemographicsReligionsTotal pop. 7.5 millionJewish     5.7 million                         Languages                       ...
DemographicsSex ratio                1.05 male/femaleInfant mortality rate    4.12 deaths/1000 live birthsLife expectancy ...
Israeli system of government• Parliamentary Democracy• 11 Basic Laws• Israel does not have a written constitution.• The Le...
PoliticalRisks            • Since its establishment in              1948, Israel has been in almost              constant ...
Legal SystemIsraels legal system combines• English common law• Civil law• Jewish law  Marriage & divorce are under the jur...
Jewish/Israeli Influence on US• Jews & the Jewish religion has a great influence on  US• It’s often said that the fundamen...
Major Economic Indicators
World Vs Israel GDP (Growth %)
GCI Rankings
Economic Sectors  • Hi–Tech Industries: Highly qualified labor    force, scientific institutes, and R&D centers.  • Diamon...
Economic Sectors  • Construction: Residential building accounts for 84    percent of total construction output, necessary ...
ISRAEL: ExportsExport of Commodities:   Exports to Regions:
ISRAEL: Imports
Major Highlights  • Market Economy: Technologically advanced    Market Economy  • Silicon Wadi: High concentration of High...
ISRAEL’S FREE TRADE   AGREEMENT
International Organization Membership
Some MNE’S in Israel
ISRAEL: High IPR Compliance
ISRAELS COMPETITIVE EDGE
Israel : Relative Advantage Hi Tech Industries • Relative advantage : No. 2 after Ireland. • Grew by 100 % between 1995-20...
Israel : Relative Advantage Chemical Industry • Chiefly due to pharmaceutical companies • Teva, world’s leading pharma com...
Recent Achievements  • Year 2000 – Zero inflation rate.  • Year 2009 – Balance of Trade deficit less than 1%    of total t...
Recent Achievements  • With a GDP per capita of $29,500 (PPP) in    2009, it ranked 24 out of 34 OECD members  • Ranked hi...
Challenges for Israel• Maintaining national security• Absorbing large numbers of immigrants• Establishing a modern economi...
Country’s Future Transformations  • First is a political settlement of the Israeli-    Palestinian conflict  • The second ...
ATTRACTIVENESS OF ISRAEL                                  GE Country Attractiveness Matrix                                ...
Israel
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Israel

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Guys, a presentation on Israel with an MNE (Multi national Enterprise) point of view

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Israel

  1. 1. IsraelPresentation by:Abhishek Das (02)Khitish Kakar (28)Ruchir Shukla (42)
  2. 2. Israel: Evolution as a Nation
  3. 3. Israel: Evolution as a Nation
  4. 4. Israel: Culture • Heterogeneous • Low – Context (Straight talk) • Monochronic Time • Low Power distance • Individualism • High uncertainty avoidance • Gender Equality
  5. 5. Implications for MNE in IsraelPride in culture and history Do not openly criticize Show interest in their culture & historyRelationship oriented Build relationships in businessBusiness commitment Business deals tend be detailed and contracts are strictly adhered to. Less scope of later changeGifts & Bribes Advisable to not offer gifts in initial business meets
  6. 6. Implications for MNE in IsraelPace of Negotiation Expect deals to be slowDecision Making: Individualistic Individual decision makers are appreciated Personal feeling and opinion are considered rather than set rules onlyGroup membership : Acquired Appreciate education and achievement of peopleGender equality Not much problem for visiting businesswoman
  7. 7. Demographics Population 74,73,052 Jerusalem 7,47600 Urban population 92% Age Distribution Pop. growth rate 1.58% Birth rate 19.24 births/1000 population Death rate 5.47 deaths/1000 population
  8. 8. DemographicsReligionsTotal pop. 7.5 millionJewish 5.7 million Languages Hebrew (official), Arabic, English
  9. 9. DemographicsSex ratio 1.05 male/femaleInfant mortality rate 4.12 deaths/1000 live birthsLife expectancy at birth 80.96 yrsLiteracy Rate 97.1%
  10. 10. Israeli system of government• Parliamentary Democracy• 11 Basic Laws• Israel does not have a written constitution.• The Legislative Branch: Knesset is Israels unicameral legislature and is seated in Jerusalem. -It has 12 standing committees. -Knesset elects the prime minister and also holds power to remove the president.
  11. 11. PoliticalRisks • Since its establishment in 1948, Israel has been in almost constant conflict with its Arab neighbors. • These conflicts, particularly the conflict over the Gaza Strip and the West Bank, have had a negative impact on the country’s stability and its international relations. • This social unrest has brought about a decline in investor confidence in much of the region.
  12. 12. Legal SystemIsraels legal system combines• English common law• Civil law• Jewish law Marriage & divorce are under the jurisdiction of the religious courts: Jewish, Muslim, Druze, and Christian
  13. 13. Jewish/Israeli Influence on US• Jews & the Jewish religion has a great influence on US• It’s often said that the fundamentals of US are Jewish and not Christian• American Israel Public Affairs Committee (AIPAC) is an important influence• A large number of Jews hold important offices in the US
  14. 14. Major Economic Indicators
  15. 15. World Vs Israel GDP (Growth %)
  16. 16. GCI Rankings
  17. 17. Economic Sectors • Hi–Tech Industries: Highly qualified labor force, scientific institutes, and R&D centers. • Diamond Industry: Multi-faceted, world leader in both cutting-edge technologies and craftsmanship. • Agriculture: Intensive system of production, close cooperation between researchers, farmers, and agriculture-related industries.
  18. 18. Economic Sectors • Construction: Residential building accounts for 84 percent of total construction output, necessary to meet the demands of renewed immigration. • Transport & Communications: Contributes 7 percent to GDP and employs 5 percent of the countrys labor force. • Tourism: Tourists attracted by Israels geographical diversity, its archeological and religious sites. Foreign currency added value of 85 percent export and employs some 80,000 persons.
  19. 19. ISRAEL: ExportsExport of Commodities: Exports to Regions:
  20. 20. ISRAEL: Imports
  21. 21. Major Highlights • Market Economy: Technologically advanced Market Economy • Silicon Wadi: High concentration of High-Tech industries & strong venture capitalist industry • Berkshire Hathaway, Intel & Microsoft
  22. 22. ISRAEL’S FREE TRADE AGREEMENT
  23. 23. International Organization Membership
  24. 24. Some MNE’S in Israel
  25. 25. ISRAEL: High IPR Compliance
  26. 26. ISRAELS COMPETITIVE EDGE
  27. 27. Israel : Relative Advantage Hi Tech Industries • Relative advantage : No. 2 after Ireland. • Grew by 100 % between 1995-2000 • Skilled workforce Highest % of population as researchers and scientists in the world • Capital Large VC and government investments in Hi Tech industry since late 80’s • Investment as % of GDP in R&D 4.7 %, highest in the world • 50 % Israeli exports are Hi Tech Products • Microsoft & Intel opened their first outside R&D centres in Israel
  28. 28. Israel : Relative Advantage Chemical Industry • Chiefly due to pharmaceutical companies • Teva, world’s leading pharma company, $16 bn annual sales Reason • Favorable government policies for Pharma companies • Relative abundance in minerals • High capital availability • Skilled workforce: researchers, scientists
  29. 29. Recent Achievements • Year 2000 – Zero inflation rate. • Year 2009 – Balance of Trade deficit less than 1% of total trade • Industrial exports grew almost six-fold in the past two decades, from $6 billion in 1985 to $34.6 billion in 2009. • Foreign debt was eliminated, from being 1.6 times the GDP in 1985 down to zero by 2003 with Israel since then becoming a creditor .
  30. 30. Recent Achievements • With a GDP per capita of $29,500 (PPP) in 2009, it ranked 24 out of 34 OECD members • Ranked higher - 15 out of 169 countries (in 2010) - on the United Nations Human Development Index • Growth of exports from $175 million in 1987 and $16.9 billion in 2009 • Achieved positive growth (0.7 percent) in 2009(Recession) • Countrys civilian labor force, from 1.65 million in 1990 to 3 million in 2010
  31. 31. Challenges for Israel• Maintaining national security• Absorbing large numbers of immigrants• Establishing a modern economic infrastructure• Providing a high level of public services (health, education, welfare, etc.)
  32. 32. Country’s Future Transformations • First is a political settlement of the Israeli- Palestinian conflict • The second transformation needed is in the field of education • The third transformation needed: a long-term investment policy that centers not only on high-tech and finance, and not only in the Tel Aviv area • Israel’s most significant failure is the poor public image which she portrays in the international community
  33. 33. ATTRACTIVENESS OF ISRAEL GE Country Attractiveness Matrix Maximize Collaborations HIGH CommitmentCountry Attractiveness Individualized MEDIUM Strategies Individualized Minimize LOW Strategies Commitment HIGH MEDIUM LOW Competitive Strength

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