Facebook share Share on TwitterRSS feed

Innovative Minds © 2014. All Rights Reserved. www.inminds.co.uk

[Boycott - Economic - World]

Comment:

Interesting Israeli insider article on the dangers of the consumer boycott to Israeli companies and the strategies they must use to fight the boycott. Its author is the CEO of a leading Israeli economic consultancy that advises Israels top 500 companies that, combined, represent more than 45% of Israels GDP.

Israeli Companies Liable to Awaken Huge Political Boycott throughout World


Adam Reuter, The Marker (trans. from Hebrew by alternativenews.org)
10 May 2010

This article originally appeared in the Israeli economic newspaper The Marker. It was translated to English by the Alternative Information Center (AIC) in support of the Palestinian-led campaign for BDS.

The Arab boycott cost Israel $75 billion dollars


Since its establishment, Israel has been under attack regarding the legitimacy of its very existence. This attack has tremendous economic implications. In the past they were due primarily to Arab countries that created the infamous Arab boycott, which cost Israel, according to various estimates and during its first 50 years (and even prior to establishment of the state), a loss of product of between US$ 50-75 billion. The negative impact of the boycott was expressed by more than the inability of Israel to export to Arab and Muslim countries, but included also the fear of multinational companies from trading with Israel, investing in Israel and developing in Israel centres and representatives (this phenomenon was particularly prominent amongst Japanese companies, McDonald’s did not agree to open branches in Israel and others). This direct and indirect boycott was further expressed in difficulties of Israeli companies to develop international contacts, to make trading partners, import more cheaply, export to certain markets and attain real investments in the Israeli market, amongst others.

In the wake of Israel’s moves toward peace already in the days of Menachem Begin and Anwar Sadat, via the peace agreement with Jordan, the long negotiations with the Palestinians and the opening of Israeli embassies, consulates and representative offices in several Arab states, large parts of the Arab boycott were weakened and even grounded, primarily in the past 15 years. International companies, apart from a very few exceptions, no longer desist from trading and investing in Israel. As a result, today in Israel we do not fear and do not devote sufficient attention and awareness as Israelis to this strategic problem.



Boycott Israel action outside Israeli cosmetics company Ahava (London, April 2010)

In order to emphasis the extent of the problem, it is sufficient to note that even more severe phenomena of economic boycott were experienced in the past by South Africans as a result of the Apartheid policies. In our time this international economic boycott transformed South Africa into a leper state and severely harmed its economy. A more severe boycott, which critically harms its economy, is experienced today by North Korea due to its nuclear policy, and we all hope that this is what will eventually happen to the Iranians.

International consumers’ boycott as a strategic danger hovering over Israeli companies

Clear examples, which are not widely discussed, are the consumers’ boycott existing today against Israeli security companies. There exist Muslim countries very far from us and not in the heart of the conflict, countries such as Indonesia and Malaysia, to which Israeli security companies would be happy to sell if only they could. If the problem ended with Muslim countries, so be it. However, the phenomenon is substantially wider and exists amongst countries belonging to the “non-aligned bloc,” many of which do not purchase weapons from Israel. Harsher examples can be found amongst countries which maintain full relations with Israel, import its products but regardless, often tend not to buy Israeli security products. This problem is of course known to the security industry and the strategic danger hovering over them is much larger than that threatening security companies in other countries, which benefit from larger target audiences for their products.

As noted, the Arab boycott partially dissipated, primarily in the last 15 years, and dulled our senses regarding this danger. However, in the future we are likely, as a state and primarily as Israeli companies, to encounter the danger of an international consumers’ boycott, not only due to our conflict with the Palestinians but also due to our nuclear capabilities, for which there are already signs from those calling on us to get rid of them (recently the Turkish Prime Minister Recep Tayyip Erdogan).

Granted, the world is most cynical in everything concerning financial profit and a majority of companies in the world tend to ignore moral issues, from employing children, human rights violations and international conflicts. This phenomenon of ignoring violations due to cold financial considerations should reduce our fear as Israelis that a renewed and radical escalation with the Palestinians or a demand for supervision of our nuclear facilities or even a renunciation of our nuclear capability will drag us to most unpleasant places. The British High Commissioner for Palestine, Sir Harold McMichael, who hated Jews, coined already in the 1930s the concept of “fighting the Jews through their pockets.” Already today it is possible to feel in these or other international bodies which raise this idea. We are witness to calls for consumers’ boycott of Israel not necessarily from Arab states, but amongst public opinion makers in certain circles (leftists and neo-liberals, radical right wing and neo-Nazi groups), on certain university campuses and in western European states (primarily Britain, Norway and Sweden) and even in the United States, primarily in California.

It should be noted that the international consumers’ boycott has heavy implications not only for Israeli exports, but can negatively impact Israeli import.

The future lies with niche companies and behind the scenes production. Israeli companies must not ignore this danger. In our opinion, Israeli companies must focus on niche activities, create services and products that accompany primary products and services and must be behind the scenes and not on the main stage. This conclusion has implications for the unsuccessful idea, in our opinion, which is bandied about occasionally for the establishment of an “Israeli Nokia” and so on.

In our opinion, there exist three strategic solutions for taking care of this danger. It should be noted that numerous Israeli companies have already implemented one or more of these solutions, for reasons generally unrelated to fear from the aforementioned danger.

1. Israeli companies must aspire to exist and act within niche areas and be original equipment manufacturers (OEM)

2. Israeli companies in certain fields must be under the umbrella of strong multinational companies.

3. Israeli companies do not need to highlight their Israeliness but the opposite, to downplay it.

Israeli companies must aspire to exist and act within niche areas and be original equipment manufacturers (OEM):

Looking long-term and apart from lessening exposure to the aforementioned geopolitical danger, niche areas have numerous advantages in global competition, the most important of which may be not being in the firing line of the huge, heavy handed international companies. In niche products and services, the level of competition is generally lower, there exist more possibilities to propose a variety of products and services of limited extent. Although market potential is small and there exists a need for specialization, the primary advantage is that in certain cases it is possible to even attain global leadership (there are no few Israeli companies that indeed accomplished this in certain niches).

Original equipment manufacturer (OEM) means that the Israeli manufacturer produces parts that are sold abroad under the name of a distributor or retailed under the purchasing company’s brand name, and the Israeli product that is fully integrated cannot be identified with the Israeli manufacturer.

Israeli companies in certain fields must be under the umbrella of strong multinational companies from the perspective that cooperation with international companies is good, when the Israeli company is under the wing of a strong multinational company. In this way, a consumers’ boycott will encounter difficulties as the products of the Israeli company are an integral part of the products/services that the international company sells and there will be great difficulty in implementing the boycott. It is clear that this solution is appropriate for companies in specific fields and that each case must be examined individually.

It should be noted that from a market perspective, this possibility of foreign control of Israeli companies has undesirable implications for the Israeli market as foreign management, regardless of how sympathetic, will have lesser sentiments for workers in Israel than Israeli management. Additionally, the location of the company’s management abroad lessens the demand for Israeli services connected to accounting, banking and financial and legal services, amongst others. However, in the search for a reduction in future strategic dangers for Israeli companies, the ruling trend in Israeli hi-tech, in which foreign companies acquire technologies from numerous Israeli companies, is not necessarily bad.

Israeli companies should not highlight their Israeliness but downplay it. Granted, there exist certain Israeli fields that are known throughout the world and emphasizing the producer as Israeli can only enhance the ability to sell the product/service. This, of course, refers primarily to the Israeli security industries, part of the high-tech industry and Israeli water and agricultural products. With this, it is fitting to consider even in these fields a downplaying of us being the manufacturers/service supplies, if this is possible.

In summary, the geopolitical and strategic danger of a consumers’ boycott on Israel may worsen in the coming years, and as such it requires at the very least some forethought by every organization involved in export or import.


The author Adam Reuter is CEO of Financial Immunities Ltd. Financial Immunities is a leading Israeli company providing economic consultancy, including business, finance, regulatory and non regulatory matters, and financial risks management to more than 500 of the largest leading companies in Israel, which, combined, represent more than 45% of the National Gross Domestic Product of Israel.

Orig src: http://www.themarker.com/tmc/article.jhtml?ElementId=skira20100504_99983

Source: http://www.alternativenews.org/index.php?option=com_content&view=article&id=2588:huge-israeli-companies-liable-to-awaken-political-boycott-throughout-world-&catid=119:english&Itemid=878


Also Of Interest

Page URL: http://inminds.co.uk/article.php?id=10384
Support Us
If you agree with our work then please support us.

Give one time donation:
£

Setup monthly donation:
£
INMINDS Facebook Live Feed
Latest Video's
Latest News..
[all-by date]
[all-by category]
[all-by modify date]
INMINDS Twitter Feed
Boycott Israel Campaign
Featured Video's
You need Flash player 8+ and JavaScript enabled to view this video.
Why boycott Israel on Campus[1:50:05]
12 London universities discuss need for BDS on campuses. Speakers include Rafeef Ziadeh, Ilan Pappe, Karma Nabulsi & Mike Cushman
Love Letters to Gaza[31:08]
A unique theatrical event using personal messages of love, support and hope from people of all ages and all walks of life to the people of Gaza.
John Pilger[7:55]
journalist and documentary maker
Antiwar Mass Assembly 8 Oct 2011
Julian Assange[7:07]
founder of WikiLeaks
Antiwar Mass Assembly 8 Oct 2011
Lauren Booth, Sami Ramadani & Yvonne Ridley[6:28]
Reading the names of the dead
Antiwar Mass Assembly 8 Oct 2011
George Galloway[6:39]
Antiwar Mass Assembly 8 Oct 2011
Jemima Khan[8:42]
Antiwar Mass Assembly 8 Oct 2011
Why Boycott Marks & Spencer 2011?[23:29]
Demo outside M&S Oxford Street(24 Sept 2011)
Sean Clinton[4:59]
Israeli Blood Diamonds Campaign
Al Quds Day rally, Trafalgar Square (31 Aug 2011)
Lauren Booth[5:24]
Al Quds Day rally, Trafalgar Square (31 Aug 2011)
Lauren Booth - Prayer for Gaza[2:46]
Al Quds Day rally, Trafalgar Square (31 Aug 2011)
Benny Morris - Historian or Racist?[34:07]
Activists oppose visit of racist Israeli historian Benny Morris who justifies ethnic cleansing and genocide.
Is Israel applying apartheid?[2:12:56]
Speakers: Yael Kahn, Jody McIntyre and Ghada Karmi (5 May 2011)
Karen Mitchell[48:27]
Partner at Thompsons Solicitors
Life changing visit to Palestine in 2008 (21 Feb 2011)
Ramzy Baroud[1:59:32]
Editor-in-chief of the Palestine Chronicle
"My Father Was A Freedom Fighter - Gaza's Untold Story" (25 Mar 2011)
Women United in the Intifada[2:31:36]
Speakers: Lizzie Cocker, Ewa Jasiewcz, Alaa Kassim, Yvonney Ridley, Isis Amlak, Sukant Chandan, Ramzy Baroud (14 Mar 2011)
George Galloway[1:01:48]
Solidarity with the Middle-East Revolution, support the people - oppose US/UK intervention (SOAS, 11 Mar 2011)
Omar Barghouti[55:08]
BDS Movement co-founder
"Boycott, Divestment, Sanctions" book launch (7 Mar 2011)
Shir Hever[1:49:09]
Alternative Information Centre
The Political Economy of Israel's Occupation, Kings College London (17 Feb 2011)
Why academic boycott of Israel[1:29:37]
Speakers: Mohammed Abuabdou(PSCABI), Mike Cushman(BRICUP), Jodey McIntyre(activist) (8 Feb 2011)
Dashed Hopes - Gaza Blockade[1:23:08]
Mohammed-Ali Abu Najela (Oxfam), Andrea Becker (MAP), Ewa Jasiewicz (Free Gaza Movement) (1 Feb 2011)
Jordan Valley: Apartheid[1:17:12]
Sarah Cobham(Brighton Jordan Valley Solidarity), Chris Osmond (Corporate Watch) (House of Commons, 1 Feb 2011)
Dump Veolia Demo[7:00]
Protesting at settlement supporter Veolia's sponsership of exhibit at the Natural History Museum (23 Oct 2010)
Boycott Israeli Dates [1/2][9:11]
Are you financing Israels brutal occupation this Ramadan?
Boycott Israeli Dates [2/2][9:05]
Are you financing Israels brutal occupation this Ramadan?
Lee Jasper [1/2][10:13]
[4 of 8] Genocide Memorial Day 2010 Session One, 17-1-2010
Lee Jasper [2/2][9:51]
[5 of 8] Genocide Memorial Day 2010 Session One, 17-1-2010
One Oppressor One Bullet[8:11]
Imam Achmad Cassiem, veteran of the armed struggle against apartheid in South Africa, speaks at the StW rally (London, 19 Feb 2005)
Salwa Alenat [1/2][9:56]
KavLaOved (Workers Rights hotline)
[1 of 8] Israel's Occupation - Abuse of Palestinian Workers (LSE 19 Nov 2009)
Salwa Alenat [2/2][8:57]
KavLaOved (Workers Rights hotline)
[2 of 8] Israel's Occupation - Abuse of Palestinian Workers (LSE 19 Nov 2009)
For Anwar [1of2][10:01]
Carmel Agrexco Valentines Action 7 Feb 2009
For Anwar [2of2][9:56]
Carmel Agrexco Valentines Action 7 Feb 2009
big
[all videos (over 200)..]
Special Additions

Featured MP3 Podcast

"Scalp bounties were the payment of a fee for proof of death of an Indian, any Indian, on a graduated scale. At the top of the scale they would pay the highest amount for proof of death by way of the production of a scalp, or bloody red skin - origin of the term 'red skins' - of an adult male Indian. Half that fee would be payed for proof of death by the same means of a adult female, quarter to be payed for proof of death of a child, child being defined as as a human being under 10 years of age down to and including a fetus.. every single colony on the east coast, every state of the Union and territory of the United States within the confines of the 48 contiguous states, had in place, in some period of its history, a scalp bounty - removed usually when there were no longer sufficient number of Indians left to kill to warrant its continuation..that's as absolutely clinical a genocidal policy as is possible to envision, they weren't interested in any particular Indians, any Indians would do and they would pay for proof of death - they wanted all of us dead."
American Indian scholar, activist in the struggle for liberation of Indigenous Peoples in America
Genocide of Indigenous Peoples in North America, Action for Social and Ecological Justice on December 2, 2001, in Burlingotn, VT [50min / 11Mb]
[need flash]

[all podcasts..]
Newsletter
To subscribe
enter your email:

COPY VERIFICATION CODEcopy this code —>
Feedback
If you wish to comment on this page:

(all fields optional)



COPY VERIFICATION CODEcopy this code —>
The opinions expressed on this site, unless otherwise stated, are those of the authors.
All logos & trademarks are the property of their respective owners and their use is covered under 'fair use' policy.
Copyright © 1998-2012 Innovative Minds www.inminds.com All Rights Reserved.
The opinions expressed on this site, unless otherwise stated, are those of the authors.
All logos & trademarks are the property of their respective owners and their use is covered under 'fair use' policy.
Copyright © 1998-2012 Innovative Minds www.inminds.com All Rights Reserved.