Question about the global arms trade | TigerDroppings.com

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braindeadboxer
LSU Fan
Utopia
Member since Nov 2011
5015 posts

Question about the global arms trade


Anyone know how this works, at least for capitalistic nations without nationalized arnament manufactorers?

When I read a news article saying country "A" signs an agreement to sell 15 fighters to country "B" for $100,000,000; what does this mean? Does country "A" act as an intermediary by first buying them from "XYZ Corporation" who builds the fighters and then in turn sells them with a markup for profit to country "B"? Or do they just essentially authorize "XYZ Corporation" to sell directly to country "B" and allow "XYZ Corporation" to make all the profit?







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Navytiger74
LSU Fan
Washington, DC
Member since Oct 2009
13993 posts

re: Question about the global arms trade


Can't speak for other nations, but we do both. In an FMS (Foreign Military Sales) transfer, the DSCA (on behalf of DOD) procures the defense articles and sells them to the purchasing government. In a DCS (direct commercial sale), a defense contract receives authorization to negotiate/sell directly to an approved government (same criteria apply in either case).

Both are subject to approval by DoS, Congress, and compliance with appicable export laws, treaties, etc.






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braindeadboxer
LSU Fan
Utopia
Member since Nov 2011
5015 posts

re: Question about the global arms trade


Gotcha.





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