Effective Product Boycott Movement, Israel Loses Lifestyle – 3 hours ago

Jakarta, CNBC Indonesia – The boycott movement against Israeli products continues to echo amidst the repeated attacks launched by the Jewish State against its neighbor, Palestine. The boycott movement also spread, not only to original Israeli products, but also to companies that reportedly support the country’s army.

Many companies that were targeted by the boycott began to worry, because the campaign had a negative impact on their shares. Starbucks shares fell to US$91.4 per share on October 12, which was the lowest price since the boycott began. Then McDonald’s shares have fallen to their lowest level since October 27, 2022.

Since the recent widespread boycott movement, there has been no report on the value of the losses suffered by Israel, but there are reports Al Jazeera in 2018 revealed that the boycott movement has the potential to result in losses of up to US$11.5 billion or around Rp. 183.37 trillion (assuming an exchange rate of Rp. 15,945/US$) per year for Israel.

Israel is not without worry, in recent times Israel’s diplomatic priority mission has been prevention Boycott, Divestment and Sanctions (BDS) movement.

In fact, the Israeli Prime Minister, Benjamin Netanyahu, has acted to ban groups that support the boycott movement. Because, thousands of people in Israel are said to have the potential to lose their jobs if their country is completely boycotted by the international community.

The impact of the boycott on the Israeli economy

Launching from The Jerusalem Post, Israel denies that the boycott movement is detrimental to them. In fact, they say, it will only “increase the suffering of the Palestinian people, not reduce it.”

A non-profit organization based in Washington, United States (US), Brookings Institution, stated that the BDS movement would not drastically affect Israel’s economy. This is because around 40 percent of Israel’s exports are “intermediate” goods or hidden products used in the production process of goods elsewhere, such as semiconductors.

Additionally, about 50 percent of Israel’s exports are “differentiation” or non-substitutable goods, such as specialized computer chips.

However, data from the World Bank shows that exports of “intermediate” goods experienced a sharp decline from 2014 to 2016, resulting in losses of around US$6 billion or around IDR 95.67 trillion.

[Gambas:Video CNBC]

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