Question

Explain how ONE of the following environmental forces ([pick any] technological, legal, competitive, or natural) could affect the process of doing business, how to do business, and/or the types of products an American company could sell in Israel

Answer 1

Technological environment can affect the process of doing business in the sense that the firms or countries with better technology would have established greater efficiency and productivity in the production of a particular good. The extent of technological development determines the type of goods that are produced. For instance, a country with advanced technology will produce sophisticated goods like software or machines. The type of technology is also determined by the availability of cheap labour. Technological advancement enables more production with less labour due to increased labour productivity.

Since 1985, the American exports into Isreal became tax free and American exports are considered high quality in Isreal. So, there is selling opportunity for Americans in Israel. But due to high transportation costs and price rigidity, some goods may not be profitable to sell. In earlier times, there was high demand for American processed food in Israel but now the atmosphere has become competitive although the market is still lucrative. In recent times the demand for organic foid products from America has increased. Another potential market is animal husbandary and animal semen. This is because US produces and exports animal products that are sterilized and not risly to consume.