Role of Military Exports in Maintaining the Defense Industrial Base An Annex to Adjusting to the Drawdown Report of the Defense Conversion Commission,
DEFENSE CONVERSION COMMISSION WASHINGTON DC
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As the Department of Defense DoD reduces spending for military equipment and services, companies in the U.S. defense industrial base may attempt to replace a portion of lost domestic revenues with military export sales revenues. The paper analyzes the probability that military exports will increase sufficiently to replace the lost domestic business. It concludes that absent a global crisis and anticipating no substantial increase in deliveries, it is unlikely that military exports will double or triple to offset declining purchases made by DoD. At best, military exports can cushion the inevitable decline in the business base of defense firms.
- Economics and Cost Analysis
- Government and Political Science