In “The Promise and Limits of Foreign Markets,” National Defense Editor, Sandra Erwin, discusses the necessity for Pentagon contractors to expand into foreign defense markets in order to balance declining U.S. military sales. Data supplied by Avascent Analytics sizes the international conventional arms market at more than $100 billion, while Avascent Managing Director Jon Barney is quoted as identifying India, South Korea, Saudi Arabia, and Brazil as the most promising targets. Barney tempers this optimism by noting that opaque acquisition processes, the need for a permanent presence in-country, and offset obligations can complicate international sales.
“Targets of opportunity do exist overseas. Between now and 2018, countries outside the United States expect to purchase more than $100 billion worth of conventional arms, according to estimates by The Avascent Group, a consulting firm. Half of those opportunities will be in Asian countries, and the other half about equally split between Europe and the Middle East. Countries whose defense markets are legally off limits to U.S. firms, such as China, Russia and Vietnam, were not included in the estimates.”
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