Effect of Israel on American Economy

Effect of Israel on American Economy

Introduction

The relations between the US and Israel are truly old, and the bond is quite strong because America played a vital role in the formation of the separate estate for the Jews in Palestine, named Israel. The birth of the Israel bulged as a backbone support for America. This is mainly because of the geographical position of Israel, which is surrounded by Arab countries of Middle East. Israel has fought many notable battles on behalf of America in Middle East and has fully supported Americans in many other wars and battles. Not only is this but also from day one America is supporting Israel in each and every matter whether it is of national or international interest. The interference influences almost all the international policies imposed and implemented by US have direct or indirect positive impact on Israel. Both countries have two way relationships and connect to each other in numerous ways such as trade, culture, social bonding, military practices, security and most importantly the economy. The impact of America on Israel's economy is quite prominent, but, as stated above there is a bilateral relationship, so Israel also impose an impact on the American economy.

Discussion

Formation of Israel

The massive killing of European Jews by Nazis created the disturbance on the land of Palestine. In World War II, the British gain power over the Palestine and banned the entrance of European Jews on the land of Palestine. This situation led to the gain of sympathy for Jews from different countries of the world. This sympathy reflected itself in the general assembly of United Nations where different countries proposed that a separate homeland for the Jews should be formed on the land of Palestine. The USA supported the recommendation to its fullest and wanted whole heartedly the formation of the Israeli state. The general assembly passed the recommendation with majority votes in favour of the Israeli state formation, and so the new state namely Israel created. Soon after the creation of the Israel, the war began between the Arabs and Jews which made the state of Israel not only an independent state but also increased its strength and power. The war between Arabs and Jews divided the Arabs amongst the separate small states between which the Israel is surrounded today. America happily accepted the birth and existence of Israel and from its birth both have worked together for strong bonds and good two way relations (theocracywatch.org, 2005).

Effects and benefits of Israel on American Economy

Since the year 1985, both America and Israel are trading with each other under the agreement of free trade area, which in turn have provided both the countries with several opportunities of increased investment and reduced trade barriers. The US is the only largest trading partner of Israel and event Israel contributes a lot in American economy there are several exports and imports of US to Israel and which includes in them diamonds, medical products, machines, agricultural products etc ...