Primary task response
The free trade agreement between the United States of America and Israel is one of the oldest free trade agreements. The trade agreement contains features that might either support the idea of setting up a company in Israel. The fact that we are planning to start of operations in Israel we have to understand the free trade agreement well. It will either affect our operations positively or negatives. It is the study of the free trade agreement that will enable us to come up with solutions for the problems that might affect our operations in the country.
In the country, the decisions that we make as a company will be greatly affected by the agreement. Since most of the businesses in Israel are mainly found in the manufacturing industry, it will not be easy to diversify our operations. As a company, diversification is one of the strategies that we can use to compete with other companies in the region. The trade agreement does not allow foreign companies to get into different sectors. We will not be able to venture into other areas because it is a rule of the agreement. It will, therefore, limit our ability to expand our operations in the region and exploit the opportunities in the region. We will therefore not be able to compete with the other companies that are allowed to venture into any of the sectors. Our strategic decisions will be limited to the fact that our operations are restricted to a given industry.
The central area that is likely to affect our partnership with an offshore outsourcing company is the fact that the companies are not allowed to import any good into the country. The good thing about the agreement is that we are allowed to partner with a United States firm so that we can import the electronics into Israel. The agreement allows the United States to export electronics into Israel. It will be good for our business since we will not be breaking any law within the agreement. The agreement will make it very easy for us to approach a company that deals in the supply of electronics so that we can import without any problem. Contacting a company from another country that is not involved in the trade agreement would mean that the company would have to follow a lot of protocols. We might also find out in the long run that the company from a country other than the United States of America is not allowed to export such commodities. The agreement will, therefore, make it easy for us to import electronics from the United States of America.
The move would be good for the business as it would allow us to reduce the importing cost. In normal situations, one would spend a lot of money to import the electronics. The agreement will enable us to avoid the unnecessary costs we would have to incur if we partnered with a company from another country. The agreement has provided suitable conditions for the partnerships between our company and other companies that operate in the United States of America. The deal has also reduced the number of restrictions between the two countries. The environment will be conducive for such a business to thrive well. The speed with which the goods are received from the United States of America will increase. The agreement will have improved the nature in which business is done between the two countries.
The contribution of the agreement will be necessary for business. Our company will perform better through partnerships with other companies in the US. It will also make it easy for us to acquire the goods we need from the US. The only problem we will experience is related to the expansion of other sectors. The agreement does not cater for such a provision.
References
“Israel Free Trade Agreement“. Office of the U.S. Trade Representative. Retrieved April 27, 2015
