BUSINESS INTERNATIONAL RELATION Regard To Israel

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BUSINESS INTERNATIONAL RELATION

The way of life of people of Israel has a significant effect in the way people contact the

business in their locality. This effect goes on with significance to international relation on

economic value.

The different effects that these cultural values impact include the following;

• The personification of negotiations

Most of the countries within the locality of Israel prefer being formal in their negotiations and

refer to the business counterparts by their formal job titles while Israelites prefer using a friendly

mode that results in building their relationship during the negotiations. Israelites just like

Americans value the friendly relationship more and bring it in their business negotiations and

transactions.

• Business Attitude

During negotiations, Israelites have the attitude of letting the transaction result in a both parties

mutual benefit, a win-win, scenario unlike some who deliberately focus on their personal need

and interest, to maximize profit regardless of a loss on the counterpart (Bock et al. 279).

• The Business Negotiation Target

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During negotiations, other nations like in India consider negotiations officially attended to into

the signing of a contract unlike with the Israelites who disregard the official agreement formality

as they regard the opportunity a privilege to make a relationship that would benefit their welfare,

growing into a business a relationship.

• Mode of Communication

Different people from different cultural background have different preferences on

communication mode. Israelites use the simple and open way that would provide the easiest

comprehension unlike with others nations like the Japanese who would get the communication

into reading the mood and the body language during the transaction.

• The mode and the design of the agreement.

Due to different cultural practices and beliefs, Israelites prefer using specific information about

the parties involved in a transaction on the initial part of an agreement making the agreement

short. However, others generalize common knowledge of the parties in the initial parts and bring

the specific business agreement later in the process of the negotiation as the agreement is

reached. They allow the agreement to build up to specific knowledge and thereby develop the

business understanding consequently.

• Different effects on the time taken to agree during a negotiation.

The Cultural effects of disregard of time during personal activities definitely affect the business

transactions whereby the negotiations would most probably take a longer time. Israelites are

punctual people who will not waste any time to reach a deal during a business negotiation

(Greenhalgh et al. 33).

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• Emotional negotiations.

Some cultural values that make some people feel disadvantaged result to an emotional

personality that is carried into the business negotiations. During such business plans, it is

sensitive to know this as they would easily misinterpret the negotiation and dissolve the

transaction or misguide the transaction. In Israel, the cultural value in Israel does not impact their

negotiations emotionally.

• The type of an agreement during a transaction.

Israel has the culture of trust which they bring into their negotiations. Some cultural values have

generally resulted in a lack of trust in people which make them suspicious during different

transactions. These values impact the transaction agreements such that it makes them much more

detailed to fine details while some people make simple and specific agreements.

• Israel cultural values make the business partners be risk takers while others nations who

rarely take risks in business agreements.

• Some cultural values impact the making of decisions such that they consult and rely on co-

operate, large group, before an agreement but in Israel decisions are simply decided upon solely.

Political, geographical and economic values impact the international business methods and

operations in devious ways that are significant.

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• Government policies in Israel result to different levies and taxes on imports and exports

making the international business profitable or non-profitable.

• Political systems define the legal values and regulations of a government within the different

countries and therefore a direct impact on business. Israel democratic political system is good

and appreciated by many nations. Its stability has made it easy for other nations to trade with

Israel to higher levels.

• Israel political system defines the stability of its government and therefore the stability of the

business viability.

• Israel Economic stability has resulted to the different integration of technology in different

areas in Israel and therefore the possible appreciation of business integrated proposals and

enhancement.

Common mistakes made by the business in international markets (Hutchings et al. 55).

• Inadequate marketing

Most companies do not give sufficient information on the products provided to the potential

target customer.

• Customization of the specific needs of the locals.

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Israel has the culture of quality which must be understood when trading with it. It is common

with most companies not understanding well the different needs of the locals concerning the

products they provide to their markets, which should satisfy the local needs.

• The different foreign policies.

Most companies that trade internationally must understand the different policies of Israel so that

there is no bridge of policies which could easily lead to penalties and barns of the products, and

therefore losses.

• Lack of sufficient knowledge and planning on the target market.

Most of the companies venture in a business opportunity without sufficient information about the

competition in the local markets. Besides, some of them end up in financial challenges due to

lacking sufficient planning for the magnitude of the customers.

Factors currently affecting International competitiveness of Israel

• The co-operate taxes impact the business competitiveness within the international markets

affecting the revenue collections and profit margins.

• Levies and other hidden costs make it challenging for Israel competitiveness on scenarios like

the payment of different charges on the cross of borders and on the kind of goods being

transported.

• Capital values on different products impose definite charges on the goods making it hard on

the trading of the very goods in different countries.

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The different modifications made on goods and services in regard to Israel so as to adapt

them to different cultures on different countries are;

• The use of the common standards known globally like the use of blue on drinking water and

the specific color codes on specific fire extinguishers.

• The use of keywords in the provision of specific services makes it possible to embrace the

provided services at a global level.

• The use and regard of global standards in the provision of specific services make it easy fro

the provision of the service.

The different challenges companies in Israel would encounter in regard to ethics, values,

language, and business practices with various countries.

• There is the denial of products due to the including of a specific ingredient to a product which

is a taboo to the inhabitant of the given country. Like pork products are unacceptable in the Arab

nations unlike it is in Israel where it is mutually accepted.

• There is the lack of proper communication due to language barriers which would possibly

lead to higher costs of production in trying to make it understood and hence, high losses and low

profits.

• Inadequate marketing due to the language barrier and therefore limited customers reached.

• Ignorance on the benefits and use of products which could be common in another country

makes it harder and takes the time to introduce and propagate the product to higher levels.

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• Religious practices and ethics make it challenging to reach a certain group of people which

could be the target customers.

• Religious beliefs make it hard to sell certain products within a specific country.

Global distribution and the availability of products in regard to Israel have affected

consumer demands in such way that;

• The efficient distribution of goods makes it possible for goods to reach different consumers

and therefore a steady increase and awareness of the products.

• High distribution of goods affects the demand and makes it go down because of flooding of

the product in the market.

• Low distribution makes the demand to go higher and therefore an automatic increase in the

profits.

The different advantages and disadvantages in developed and developing countries in

regard to business opportunities in Israel are;

• Business opportunities in developed countries like Israel are at a high rate due to the control

of the government regulation on the level of the business entry and therefore those doing it

would definitely make good profits. In developing countries, there are lots of flooded markets

due to uncontrolled markets

• Good infrastructures in Israel make it easy to maneuver and provide the products up to

remote areas, a fact that is completely a challenge to developing countries.

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• The cost of labor in developing countries is quite low and therefore makes it easier to run a

business unlike it is for the developed countries where the cost of labor is quite highly rated for

and therefore impacts profits.

• The consumer levels in developed countries determine the amount of sell and therefore the

profits while in developing countries, the effect of consumer needs is little as the consumption of

the product is affected by other factors like lack of knowledge on the goods (Prasad et al. 105).

Israeli New Shekel currency in comparison to different currencies of the world

The US dollar 0.28

Britain pounds 0.22

German mark 0.49

Canadian Dollar 0.38

Euro 0.25

The common mistakes made by companies when entering a foreign market.

• They do not allow the locals to advise and lead the business and therefore fail to permeate the

local market satisfactorily. For example the culture of quality of consumers in Israel

• Failing to understand the needs of the locals (Hiebeler et al. 115).

• Being unable to understand the level of the product utilization at the local market.

• They do not specify the target market that is the country of interest for the sale.

• There is normally data about different services that was ever given; these countries do not

take note of such challenges.

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Problems that companies in Israel face when exporting goods

• Unexpected costs that are very high like border levies.

• Language barrier is a common challenge and hinders effective marketing

• Unstable foreign exchange results to unpredicted losses.

• Foreign policies that could hinder the product from selling.

Why Israelites enjoy business in a variety of international markets

• The Strong currency of Israel enables it to easily trade with all other countries

• Israel has a strong networking that provides room for the business expansion.

 Israel political stability makes it easy for their trading internationally.

Changes in the value of the Israel New Shekel will affect business opportunities in such a

way that;

• It shall provide a stable business advantage like at the stock exchange.

• There is a stable business relationship between the Israel allies and therefore a possible make

in profits between the different countries.

• Improved welfare of the participants due to the possible profits from the different

opportunities.

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Works Cited

Bock et al. "The effects of culture and structure on strategic flexibility during business model

innovation." ." Journal of Management Studies (2014): 279-305.

Greenhalgh et al. "The effects of negotiator preferences, situational power, and negotiator

personality on outcomes of business negotiations." Academy of Management Journal

(2014): 9-33.

Hiebeler et al. Best practices: Building your business with customer-focused solutions. Simon

and Schuster,. Ketteman, 2012.

Hutchings et al. Exploiting the links between theory and practice: Developing students' cross-

cultural understanding through an international study tour to China. Higher Education

Research & Development, 2013.

Prasad et al. "Effects of financial globalization on developing countries: some empirical

evidence." India’s and China’s Recent Experience with Reform and Growth. Palgrave

Macmillan UK,, 2015.

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BUSINESS INTERNATIONAL RELATION Regard to Israel

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