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Changes in the location of the United States Defence industrial base: Analyses of causative factors
Authors:Ivars Gutmanis
Institution:(1) Hobe Corporation, 1250, 24th Street NW, Suite 300, 20037 Washington, DC, USA
Abstract:During the last few decades international diffusion of the industrial activities among the established and the newly industrialized countries has occurred. Concurrently, the United States (US) has lost some of its status as the dominant industrial power in the World's markets. These changes have forced the US Department of Defence to surrender, at least partly, one of its principal strategic tenets, that of placing the reliance for its defence goods and services almost exclusively on the supplying entities located within the boundaries of the US.To a significant extent, these developments have come about as the result of the US policies not to intervene in the nation's and world's markets, and a deliberate and comprehensive intervention via policies, laws, and regulations in such markets by the governments of the other countries, including the US allies. The significant reduction of the military threat from the former Soviet Union may already have altered the conduct of the economic policies and defence strategies by the US, by its allies and by other nations.It is reasonable to assume that the US will see the continuation of international collaboration in the development, design and production of the future weapons systems. The former US allies and the other industrial nations, on the other hand, are in quest for further expansion of these industrial bases, and show limited interest in the further collaborative effect in the development of the future weapons systems.Unless appropriate co-operative economic and strategic policies are implemented, the emerging conflicts among the US, its allied and other industrial nations, presently in their infancy, may develop into a more intense confrontation among the world's industrialized nations. If this takes place, the US will be forced to abandon its laissez-faire policies, limit access to its markets and curtail the international diffusion of its industrial entities. The ultimate result of these developments may be geoeconomic conflicts among the industrial nations.This article is adopted from chapter in a forthcoming volume,Political and Geo-economic Issues Confronting the United States, the European Community, and Japan by Ewan W. Anderson and Ivars Gutmanis.
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