Business
The capital market in Israel
To buy blue and white?
The manufacturers are shouting, but not sure rightly so
Will imposing tariffs on imports really help Israeli manufacturers and blue and white products should be preferred?
This claim somewhat confused Avichai Snir - and he turned to help to understand it
Tags
Import
Manufacturers
Covers
Avichai Snir
Friday, 11 December 2020, 00:18
Share on Facebook
Share on WhatsApp
Share on general
Share on general
Share on Twitter
Share on Email
0 comments
Corona vaccination campaign in the UK launched: 90-year-old grandmother ...
The Business Development Manager of Abu Dhabi's Global Market ...
Dr. Birks: The corona is the most difficult event the country has ...
Big Brother, Gal Gvaram
The first vaccines arrived in Israel, Netanyahu: I will be ...
Netanyahu: We will not hesitate to add restrictions, the sooner we do so ...
USA: The House of Representatives approved the non-incrimination of ...
Despite the corona crisis, the shekel strengthened and the dollar at the low exchange rate ...
Shirbit CEO: "We are working for a quick return to activity ...
The detention of Ilya Shakon, who is suspected of causing the death of ...
Astrazenica: The vaccine we developed for Corona is effective at a rate of ...
In the video: Carmel merchants fined after opening stalls, queues at Big Centers (Photo: Yotam Ronen and Niv Aharonson)
I opened the browser, and saw a headline saying, "The Treasury is sticking sticks in the wheels of industry."
That sounds interesting, so I started reading.
The first sentence I read went something like this: The president of the Manufacturers' Association complains that at a time when exports are falling by 20%, the Ministry of Finance is hurting the industry by not giving preference to blue-and-white products.
It confused me, so I called Dr. Ronen Bar-El. He once taught international economics, so I thought maybe he could help me. Before I asked how he was, I asked if he had not once taught me that tariffs on imports are a tax on exports. He replied I'm right, so I asked him how it could be that when the Ministry of Finance allows imports, it hurts the export industry.
More on Walla!
NEWS
Minister Katz stated that "the time of the stressors has passed" - right?
To the full article
More on Walla!
NEWS
The 'Friends - Roadside Assistance' button will be embedded in the Yellow app
Warm home: This is how you will spend the winter in both comfort and style
The sound of pop: This is how the big chains took over the pop-up trend
The advantages of mortgage insurance in a digital insurance company compared to the banks
Ronen replied that I did not understand.
That is, it is true that restrictions on imports are a tax on exports;
As soon as imports fall, the exchange rate strengthens, and exports are hurt.
He even said that the current situation is a wonderful example of this.
What is happening today is that exports from Israel are much less harmed than imports - a large part of Israel's imports are Israelis who travel the world, and when there is a corona, they stay in the country.
When exports are less affected than imports, the shekel jumps to new highs, and exporters complain that it is difficult for them.
But, Ronen explained, that's not the point at all.
Manufacturers are not interested in exports at all.
They are just complaining that the Ministry of Finance is not willing to pay the high prices they want.
I asked Ronen, but maybe they still deserve us to pay them high prices.
After all, they produce blue-and-white goods.
So Ronen asked me what is so blue-and-white in the products we buy.
"When you buy elite chocolate," he asked me, "did cocoa grow in Metula? Did sugar cane grow in Petah Tikva? When you buy a Fox shirt, does it come from the Dimona textile factory? ? "
The manufacturers are yelling to shout
Besides, Ronen told me, look what's going on here.
The manufacturers complain both about the fact that we do not buy blue and white, and also about the shekel strengthening.
Because if we buy blue and white, the shekel will continue to strengthen, they will demand that the government and the Bank of Israel also intervene at the Foreign Exchange.
To their credit it can be said that they know how to shout, which is why the Prime Minister and the Minister of Finance listen to them.
This means that the Bank of Israel and / or the government will most likely intervene in the exchange rate, and we, the consumers, will also pay a high price for blue and white, as well as a high price for the imported products that we will still buy.
In short, what the manufacturers want is for us to pay more, and also for us to listen when they cry about how hard it is for them. "
I had nothing to say, so I looked at the article again. I saw that the president of the Manufacturers' Association did not come with demands on consumers. , The manufacturers are asking the public to buy blue and white not because they have to, but because of the mutual brotherhood that exists between all of Israel. "" Ah, "Ronen replied." Why did they not say before?
If they want donations, no problem.
Stop interfering with imports and publish an account number.
It will be cheaper for me to contribute to them and finance restrictions on imports.
Besides, I am always ready to donate to those who need it. "
I was left speechless. What generosity.
Dr. Ronen Bar-El, The Open University
Dr. Avichai Snir, Netanya Academy and Bar-Ilan University
Share on Facebook
Share on WhatsApp
Share on general
Share on general
Share on Twitter
Share on Email
0 comments