Date of Award

9-1991

Document Type

Thesis

Degree Name

Master of Science in Cost Analysis

First Advisor

Charles M. Farr, PhD

Abstract

This study sought to highlight the evolution of certain trade practices in U.S.-international arms trade. Limited to the eighties, the study divided the decade into two halves: 1980-84 and 1985-89. For each of the nine trade practices considered, period profiles for the two halves were developed and subsequently compared. The population consisted of the eighteen largest (by dollar value) sales of the decade. They included Air Force, Navy and Army systems. Some programs were FMS programs while others were cooperative or direct commercial sales. The following results were noted: The second half of the decade witnessed some diversification in the types of weapon systems sold. The customer base remained unchanged at two-thirds of sales being made to third world countries. The second half evidenced an increase in direct commercial sales activity. Consequently, more none-LOA documents were used to implement the sales. The number of times offsets occurred in each period stayed the same. Furthermore, the average level of offsets remained remarkably constant. However, the direct to indirect offset ratio rose in the second half. Companies and countries became more creative in implementing offsets. Economic ramifications of weapon sales gained importance in the second half.

AFIT Designator

AFIT-GCA-LSY-91S-4

DTIC Accession Number

ADA243943

Comments

The author's Vita page is omitted

Presented to the Faculty of the School of Systems and Logistics of the Air Force Institute of Technology, Air University, in Partial Fulfillment of the Requirements for the Degree of Master of Science

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