ABSTRACT
This chapter examines the global defense industry in detail. It explores the impact of economic growth, shifting defense priorities, and fiscal constraints on the evolution of global trade in the defense market, as well as the efforts of countries to protect their own defense industrial bases. The chapter examines the European defense industrial base and fiscal constraints explore the challenges and solutions facing European countries. It examines the impact of budgetary constraints in various countries on the European defense industrial base, the role of alliances between countries in developing equipment, and the strategies of contractors in closing key facilities, redeveloping their company, and focusing on international sales. The economic growth in many of the countries and fluctuations in their military expenditures will impact the profitability of US defense contractors who increasingly rely on expanding their international military sales, as well as the ability of domestic industrial bases of overseas countries to develop.
