Exporting defence equipment has become an important element of most nations’ security policy. Indeed, the export potential of a new defence programme is normally a central feature of any government’s investment appraisal process. Consequently, governments of the major spenders actively support their domestic industry in developing overseas markets. Contractors can seek to export equipment directly to the buying nation but most importers expect some form of local involvement. This explains why strategic alliances of various forms characterise the defence industry.
Clearly it is vital that companies select the right form of alliance structure to meet the circumstances. This in itself, can be the focus of intense negotiation, given that it can indicate either a short- or long-term commitment to the partner and its host country. The choices made regarding other, equally important factors will influence the success or failure of overseas business development initiatives. Three issues are of particular relevance:
- Transferring and exploiting technology
- Developing and maintaining an acceptable corporate governance model
- Identifying, monitoring and managing contingent liabilities
How PricewaterhouseCoopers can help you
At PricewaterhouseCoopers, we can advise you in managing the application and use of your intellectual property overseas, in ensuring compliance with export and other regulatory controls, and in effectively managing offshore investments and business activities.
