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By: Kogila Balakrishnan (Author)
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This book discusses the theory and practice of offsets, mainly in international defence procurement but also addresses briefly offsets in civil procurement. It focuses on the impact of offsets on industrial and technological development. The book is divided into three parts; part one discusses the theory of offsets, while part two addresses offsets policy framework, objectives, offsets terminologies, and technology management and part three focuses on offsets implementation, including issues and challenges, offsets success factors, case studies and offsets measurements and outcome. The book targets practitioners, governments, academics and students in international business management.
Technology offsets, a nonconventional international trade-financing tool, is used by governments (buyers) to obtain industrial and technological benefits from companies (sellers) as part of international procurement. Offsets deals involve billions of dollars and this practice exists in around 80 countries around the world. Though offsets is a popular practice in defence, it is increasingly gaining popularity in civil sectors. Offsets is often tainted by controversy and receives bad press. What then makes offsets popular? Governments claim that offsets delivers technology and knowledge transfer, skills in high technology sectors and employment, and offsets expands export opportunities through participation in OEM supply chains. For companies, offsets is mainly employed as a tool to obtain a competitive edge and win sales in international business. In the past, there have been mixed results of case studies on the impact of offsets successes and failures.
Considering the mismanagement of globalisation, unfair trade agreements and current political and economic discontent, there is a stronger need for governments and companies to use vehicles such as offsets to create a relationship of trust and commitment for sustainable development. This book fills the gap in offsets and focuses on how to manage offsets more effectively by addressing issues of strategy, policy and implementation, technology management, governance and risk.
Technology Offsets in International Defence Procurement is designed for those studying international procurement, international trade, international business, technology management, defence policy and industrial policy. This book will also be of interest to practitioners and policy makers in both government and industry.
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