ABSTRACT
This chapter analyzes the international dimension of global military competition among the neutrals in order to reach further insights into the possibilities for a neutral alternative. Demands by the brotherhood created by the armed neutrality policy, differences in the indigenous military industrial base, increasing costs of military production and changes in the international military market are important factors explaining neutral foreign military sales. The differences between Austrian import patterns and those of the other neutrals are most likely due to the treaty restrictions in Austrian acquisitions and Austria’s special military doctrine. Much of the Austrian militaiy demands can be fulfilled from suppliers other than the United States. As long as the delicate political balance act between restricting and permitting foreign military sales exists, there will be loopholes, whether deliberate or unforeseen. Such a market situation has been extensively studied in economic theory as a sort of monopoly.
