I suppose with the cancellation of Israel's indigenous Lavi fighter in 1987, they might have been open to the purchase of the F-20, particularly as the F-16 couldn't operate the AIM-7 missile but the F-20 could.
In the real world, the Lavi lost out to the cheaper F-16 but if Northrop had been allowed to market the F-20 they may have been more effective in getting sales than the State Department (who held the rights to market the aircraft and seemed uninterested in doing so).
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