Question

Explain how differences in politics, the political system, or the role of government in the economy can affect how an American (USA) company does business in the Israel, the types of products that can be sold, or, in any way, can affect business decisions

Answer 1

Difference in politics, political system set the preferences opted by the government and government plays roles to build a particular type of strategic relationship. USA and Israel, are the strategic partners since the beginning of the formation of the country of Israel and policies and orientation of the US government, will decide the focus of the trade with Israel with the US companies. For example, with growing tension in the middle east region, arms selling US companies will be selling arms and ammunitions and allied goods in the Israel as these goods will be demanded in that country. The focus upon the food supply, will make the US company to supply packaged agricultural food products in Israel so that food supplies are maintained and it is the focus of the political system. Here, the government before the Obama administrations were spending more upon the military and related sectors, but Obama government onwards, the focus shifted to health, education and related sectors. So, it changed the business landscape and companies started trading those goods that are promoted by the government in the USA and demanded in Israel.