Changes in U.S.-International Arms Trade Practices
Abstract
This study sought to highlight the evolution of certain trade practices in U.S.-international arms trade. Limited to the eighties, the study divided the decade into two halves: 1980-84 and 1985-89. For each of the nine trade practices considered, period profiles for the two halves were developed and subsequently compared. The population consisted of the eighteen largest (by dollar value) sales of the decade. They included Air Force, Navy and Army systems. Some programs were FMS programs while others were cooperative or direct commercial sales. The following results were noted: The second half of the decade witnessed some diversification in the types of weapon systems sold. The customer base remained unchanged at two-thirds of sales being made to third world countries. The second half evidenced an increase in direct commercial sales activity. Consequently, more none-LOA documents were used to implement the sales. The number of times offsets occurred in each period stayed the same. Furthermore, the average level of offsets remained remarkably constant. However, the direct to indirect offset ratio rose in the second half. Companies and countries became more creative in implementing offsets. Economic ramifications of weapon sales gained importance in the second half.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1991
- Accession Number
- ADA243943
Entities
People
- Rustam S. Karmali
Organizations
- Air Force Institute of Technology