ABSTRACT
This chapter examines the concerns surrounding the alleged inroads of foreign manufacturers into the United States defense industrial base. The background behind the concerns, with a specific focus on the recent competition between Boeing and a team composed of Northrop Grumman and European Aerospace and Defense Systems (EADS) over what may be the second largest defense contract in US history to supply the US Air Force (USAF) with a new fleet of aerial refueling tankers. As globalization exposes vulnerabilities, it is likely that countries will continue to promote domestic champions by preventing foreign acquisitions through protectionist concerns linked to national security. Under section 232 of the Trade Enhancement Act of 1962, manufacturers in industries can seek tariff protection or other regulatory protection from imports for national security reasons. For example, President Carter and President Ford imposed oil import taxes to stimulate the US oil production industry to be more self-sufficient.
