DEFENSE TRADE: Issues Concerning the Use of Offsets in International Defense Sales

Abstract

Views on defense offsets range from beliefs that they are both positive and an unavoidable part of doing business overseas to beliefs that they negatively affect the U.S. industrial base. Defense offsets are often viewed as the key to foreign sales and thus increased business on the prime contractor level. They can also result in reduced unit costs to the U.S. military because of the increased size of production runs. However, the use of a foreign supplier by a U.S. prime contractor as a result of an offset may lead to decreased business opportunities for U.S. suppliers. Additionally, U.S. prime contractors may develop long-term relationships with foreign suppliers, which may lead to the transfer of capability from the U.S. defense industrial base.

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Document Details

Document Type
Technical Report
Publication Date
Jul 08, 2004
Accession Number
AD1183550

Entities

People

  • Katherine V. Schinasi

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Aerospace Industry
  • Agreements
  • Commerce
  • Congress
  • Contractors
  • Contracts
  • Department Of Defense
  • Employment
  • Fighter Aircraft
  • Governments
  • Intellectual Property
  • International Relations
  • Law
  • National Security
  • Personnel Management
  • Technology Transfer

Readers

  • Defense Acquisition Program Management
  • Environmental Impact Assessment (EIA) of Proposed Air Force Base Actions.
  • Government and Public Administration Law.