Defense Trade Contractors Engage in Varied International Alliances
Abstract
U.S. and European defense companies create teams, joint ventures, and subsidiaries and sometimes merge with or acquire one another in order to compete worldwide for the sale of military weapon systems. Generally, two or more companies form a team by negotiating an agreement to work together to pursue a particular government procurement, with one company acting as the primary contractor and others as subcontractors. In contrast, a joint venture is typically a separate legal entity, either a partnership or a corporation, that two or more companies form to pursue a discrete market. A subsidiary is different from both a team and a joint venture because it is wholly owned by one company and is physically located in another country so that it may pursue that country's defense business. Defense companies form these alliances and subsidiaries to access and increase their competitiveness in other markets.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2000
- Accession Number
- ADA381591
Entities
Organizations
- United States Government Accountability Office