Since 2000, Israel's manufactured exports to worldwide markets have almost quadrupled. This growth has been linked to a significant structural shift in Israel's export composition. Exporters in Israel have moved away from conventional labor-intensive products and toward more creative and technology-intensive manufactured goods, which currently account for about half of Israeli exports. Exports contribute about 40% of Israel's GDP.

Israel has a free market economy that is technologically sophisticated. According to Trading Economic (n.d.), Israel's top exports are cut diamonds, high-tech equipment, and medicines. Crude oil, cereals, raw materials, and military equipment are among its main imports.

• What do you think that Israel can produce a particular good rather than having it imported?
• Based on the above, what are the absolute advantage, comparative advantage, and opportunity costs for the State of Israel?

Israel Exports1959-2021 Data: 2022-2023 Forecast: Calendar: Historical: Chart. Trading Economics. (n.d.). https://tradingeconomics.com/israel/exports.