ABSTRACT
It has been shown that North Atlantic Treaty Organization (NATO) weapons standardisation policy is an area which is dominated by vague ideals, numerous but unsuccessful policy initiatives and a general lack of serious independent analysis, critical appraisal and empirical evidence. This chapter explains the choice of aerospace, the research methodology, and the sample of firms. Various procurement policies have been advocated as a means of improving weapons standardisation and reducing unit costs. Each option has different cost-benefit implications for a nation and for NATO as a whole, and the preferred solution will depend upon the policy objectives and constraints facing decision makers. The chapter presents a simplified example on costs of alternative policies based on a single cost curve, with unit cost differences reflecting variations in the scale of output. It also presents the results of a research study using interview-questionnaire techniques in which firms were asked for their views.
