The field of foreign trade plays a significant role in Israeli economic activity. Nearly every business in Israel has some sort of connection with activities abroad. Therefore, it seems natural to me that small businesses also have some international involvement at various levels.
International activities can categorized:
The field of services in world trade has been continually developing in recent years.
The advantage of international activities
The risks of international activities
We’ll try to briefly examine the characteristics and methods used in each of the categories.
The world market is gigantic, while the Israeli economy accounts for only about 0.5 percent of international trade.
The decision on whether to begin exporting should be made cautiously, after careful consideration.
There are companies that were established from the outset with the goal of achieving a substantial proportion of exports in their business activities and there are companies that regard exports as a secondary activity.
It is advisable to start with small steps and low expenditures, and to develop slowly. This mainly applies to small manufacturers whose product has a relative advantage in the world market.
A distinction can be made between:
Importing and exporting services
This field is expanding and currently accounts for about 10 percent of world trade. (We’re far below this figure in Israel.) There are many businesses in Israel that export their services, either directly or indirectly.
There are also many Israeli businesses that purchase various services abroad, importing them to Israel.
In the Internet age, one can generalize and say that everything can be found on the Web. Still, there are many additional sources of information.
In summary, each business needs to decide where it wishes to focus and then to act accordingly. The field is large and it is possible to succeed or fail in a big way. Consultation and follow-up with someone experienced in the field can help the business make strides forward.