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.

• Centered in the Midst of Arab world in the Middle East.

Picture from www.mapsofworld.com

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

• 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.

Photo from www.CBSNews.com

Jewish Influence on Israeli Culture

• 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

When traveling to Israel, below are just a few aspects require a good understanding of the Jewish religion.

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. – 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

• Advanced Agriculture– Almost no importation,

despite limited water supply.

– Exports that exceed Imports

• Transportation• Advanced Healthcare

and World recognized facilities – Rose out of issues

caused by immigration shortly before Israel’s statehood.

• 4.8% of Israeli GDP is spent on R&D, World’s highest.

• Highly Skilled Labor force

• Large service sector comprising 50% of labor force

• Large investment in technological Sector – 90% of R&D money

• Education emphasizing in scientific and technological skills.

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.

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 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 Per Capita GDP Egypt $4,400Israel $22,300Jordan $4,800Lebanon $5,300Syria $3,400

Reasons to do Business in Israel

2. Venture Capital 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 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