Autarky or Interdependence: U.S. vs. European Security and Defense Industries in a Globalized Market
Globalization theorists show how downward pressure to compete and/or save costs in global markets will lead producers and consumers to source goods and services in the cheapest and most efficient manner. However, in certain sectors, such as the defense industry, security concerns and politics can ov...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Henley-Putnam University
2017-06-01
|
| Series: | Journal of Strategic Security |
| Online Access: | http://scholarcommons.usf.edu/jss/vol10/iss2/3/ |
| Summary: | Globalization theorists show how downward pressure to compete and/or save costs in global markets will lead producers and consumers to source goods and services in the cheapest and most efficient manner. However, in certain sectors, such as the defense industry, security concerns and politics can overshadow economic logic when it comes to making procurement decisions. These political and security concerns keep the U.S. defense industry from using the most cost-effective supply chains and manufacturing centers, whereas in Europe, post-Cold War socioeconomic and political realities allowed for more transnational cooperation on defense procurement. Three cases serve to illustrate the spectrum between autarky and interdependence in defense procurement and how fundamental political, legal, and structural constraints prevent the U.S. defense market from becoming fully efficient. |
|---|---|
| ISSN: | 1944-0464 1944-0472 |