Offsets in Weapon System Sales: A Case Study of the Korean Fighter Program

Abstract

This study sought to develop a framework of factors which impact the success of offset agreements. These agreements have impacts on the U.S. defense industrial base, employment, the balance of trade, and the ability of the U.S. to protect its technology. Consequently, their study is important. A framework of twenty-two factors was developed through an extensive literature review and then tested against the offset proposals in the Korean Fighter Program (KFP). In the KFP case study, only one of the factors, high visibility of the product, appeared to differentiate between the two proposals and have an impact on the final outcome. The researchers also sought to determine the impact of the U.S. government's involvement in the negotiations. It was found that negotiations between U.S. government parties and Republic of Korea representatives and the U. S. restriction of certain components to Foreign Military Sales channels had an impact on the KFP offset proposals.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1992
Accession Number
ADA259680

Entities

People

  • Bill Sain
  • Deborah L. Kremer

Organizations

  • Air Force Institute of Technology

Tags

Communities of Interest

  • Air Platforms
  • Counter WMD
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Agreements
  • Air Force
  • Aircraft Equipment
  • Aircraft Industry
  • Airframes
  • Birds
  • Business Administration
  • Commerce
  • Employment
  • Fighter Aircraft
  • Foreign Military Sales
  • Governments
  • Howitzers
  • Interagency Coordination
  • International Trade
  • National Security
  • Personnel Management

Readers

  • Educational Psychology
  • Government Contracting/Procurement.
  • Systems Analysis and Design