ABSTRACT
In this chapter we seek to lay conceptual foundations to achieve a clearer understanding of the potential for mandated defense offsets to generate economic and/or defensestrategic benefits for the countries that use them. Mandated offsets may include forms of countertrade, local content arrangements, and bundling. We focus on the operation of a hypothetical Defense Procurement Agency (DPA) in a representative country and assume that it needs to fulfill a given set of requirements for the purchase of military equipment.
