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An analysis of the impact of military export offsets on the United States industrial base

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Author
McCord, David G.
Date
1998-09
Advisor
Hoivik, Thomas H.
Desbrow, Sandra M.
Second Reader
NA
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Abstract
The purpose of this thesis is to determine what effect the growth of offsets, as a condition of sale of military articles, has had on the U.S. defense industrial base. These effects are measured by assessing how this trade practice has impacted the employment, trade, and competitiveness of the U.S. defense industry. Additionally, the present U.S. Government policy towards offsets is explained. Analytical data taken from both Office of Management and Budget and Department of Commerce reports are presented and analyzed. Interviews with large and small- to medium-sized business spokesmen, in addition to Department of Commerce experts, are presented to augment the quantitative results. Different levels of U.S. Government oversight are explained as well as their advantages and disadvantages. The macroeconomic effects of offsets on the U.S. defense industry are inconclusive. However, offsets do seem to impact the U.S. defense industry adversely at the subcontractor level when specific industrial sectors are analyzed. Large defense contractors view offsets as a necessary marketing tool in order to maintain global competition. Most small to medium-sized contractors do not support the use of offsets, claiming that they export jobs and work orders overseas, eroding the defense industrial base at the subcontractor level.
URI
https://hdl.handle.net/10945/32761
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  • 1. Thesis and Dissertation Collection, all items

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Showing items related by title, author, creator and subject.

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    Trade offsets in Foreign Military Sales--the F/A-18 program: a case study. 

    Moses, Robert Leslie.; Smith, Raymond W. (1987);
    This case study is intended to provide an overview of trade offsets and how these arrangements affect the domestic F/A-18 Strike Fighter program. The study defines trade offsets and interprets the existing Department of ...
  • Thumbnail

    The determinants of United States government policy and practice towards offsets in international trade 

    Milligan, Joseph E. (Monterey, California. Naval Postgraduate School, 2003-12);
    icant. US policy considers offsets to be economically inefficient and market distorting, restricts US government agency involvement in offsets, and places responsibility for such arrangements with businesses. Offset policy ...
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    Offset implementations for Turkey's International Defense Acquisitions 

    Zorluoglu, Habib Izzet; Cakir, Turker; Tezcan, Fahrettin (Monterey California. Naval Postgraduate School, 2008-12);
    "Offsets" is the umbrella term for a broad range of industrial and commercial "compensatory" practices. Specifically, offset agreements in the defense environment are increasing globally as a percentage of exports. ...
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