The Economics of Offsets: Defence Procurement and Countertrade

Stephen Martin

The Economics of Offsets: Defence Procurement and Countertrade
Format
Hardback
Publisher
Harwood-Academic Publishers
Country
Switzerland
Published
9 February 1996
Pages
432
ISBN
9783718657827

The Economics of Offsets: Defence Procurement and Countertrade

Stephen Martin

Offsets, or work-sharing arrangements, are frequently requested by governments when buying foreign defence equipment. Under an offset the vendor agrees to place work to a set value with firms in the buying country. Although popular, some claim that offsets create jobs and enhance the defence industrial base. Others argue that offset work would have been won without the offset or that it is low technology work which ceases once the vendor has fulfilled its offset obligation. Somewhat contradictorily, defence exporters with large offset obligation are often criticized for transfering work and technology to potential foreign competitors.

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