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

摘要

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.... South Korea, Foreign military sales, Foreign trade, International trade, Military procurement.