Foreign currency trading volume... and exporting COMPANIES?

The last post was about the decline of the dollar. Israel has been dependent on the mighty dollar for a long time. I started to notice that regardless of the decline of the dollar, or even due to it's decline, Israel is moving slowly and systematically away from too much dependence on the US economy and it's currency. One thing that would be interested to notice is what amounts of trade we are talking about. The Israel Bank (the government's) statistics show a total trade of 54 billion dollars was exchanged in all foreign currency last year (2007). For the year before (2006) the amount was 36.6 billion dollars and for the before that (2005) it was 28 billion dollars ($16B in 04). Well, this trend shows that Israel has increased it's trade by 48% the last year and by 193% over the last two years. Nice numbers, which would mean, that the dollar's decline is even more important to the economy and each Israeli citizen's pocket. But in the numbers there is a bigger trend, Israel is trading in a much larger rate than ever before. So while the dollar is declining, the amount is going up. Overall, the dollar's decline has an impact on individuals and companies, but the growth in total amount is more important. This is what you see in the offices and conference centers the last two years.

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Ten shekels, worth 16% more the last six months... and going up!
The growth of business export in Israel is not only growing, it is also changing the way Israelis work. This trend of cooperation on a global basis is copied from American and European companies. But it also fits well with the international makeup of the Israeli work force. It is also a reflection of the pent-up desire to build a richer economy outside the limitation of a small country in the transition from 3rd world to a modern economy. The unique situation in Israel is based strictly on skills and creativity. Israel has developed a system of exporting companies, projects, management, and intellectual property. This is probably the most enviable position in the export world. While China needs to build factories and train workers, Saudi Arabia needs to pump and store crude oil, and Argentina needs to develop agriculture, Israel needs to put in networking infrastructure and build office complexes. The strategy of building companies and developing research and development organizations has been in the works in Israel for more than 30 years. Intel has come to build their first manufacturing plant out of the US in 1974. The office of the chief scientist (Israel government agency) have been supporting "technology incubators" since 1991. The office of Export and International Cooperation has resources, specially for small Israeli companies, to find experts for starting and growing international business.

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Israel Export and International Cooperation Agency
These and other agencies all look for outside help, which means, strong push for companies from all over the world to work, invest, and cooperate with Israeli companies. It all adds up to what is going on here, exporting COMPANIES! It started with selling start-ups to American technology companies and now it has spread to Asian technology and international bio-med and pharma companies. So, if you have dollars and are worried about the value in New Israeli Shekels, don't worry so much, you can always buy an Israeli stock and see your worth go up. Or if you have a bit more to invest, get a few Israeli entrepreneurs together and sell your company to a Korean tech firm in a few years.