Globalization helped Israel’s economic development and success by allowing it do business with trade partners around the world. In addition, Israel’s high-value-added products come from its high-tech industrial sector with a strong history of knowledge, technology and innovation. As a result, electronics, software, chemistry, pharmaceuticals and aviation these products have earned strong returns in world markets.
However, globalization provides Israel with some challenges. The country’s traditional sectors compete with producers in developing countries, where wages of workers are one-tenth of equivalent industries in Israel. Plus, large companies in prominent economies enjoy size advantages most Israeli manufacturers lack, lowering their costs and prices. Globalization also brings Israel’s educated, skilled and entrepreneurial work force to the attention of the rest of the developed world, attracting countries able to offer higher compensation than they could receive at home.
The Israel 2028 plan offers a number of strategies that will create economic, social and cultural conditions to enhance Israel’s appeal for its educated, skilled employees, and overcome the challenges posed by globalization.
To see how the Israel 2028 plan recommends overcoming the challenges globalization brings while continuing to enjoy its benefits, click here to review the relevant section of the plan.