Ruti Zisser's Palo Alto, Calif., boutique that offers Israeli-made clothing and accessories started with trunk shows she hosted at a studio next to her home, and most of the attendees were her Israeli friends. Then she found a niche that extended past her original audience. "I had a lot of American women with no connection to Israel who fell in love with the clothes," Zisser said. She plans to open a second store soon.

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