Ad strategies of defense contractors

Article Abstract:

Advertising campaigns mounted by defense contractors generally stress two points: (1) the size of the U.S. investment in the product (number of planes purchased or systems in use), and (2) the technical advantages of the product. For example, McDonnell Douglas advertises its Harpoon missile system in South Korea and Singapore as the system used by 17 other U.S.-affiliated nations. Obviously, this tactic may not always work, and companies such as Allied-Signal are learning to stress international cooperation when marketing defense contract items. This latter advertising strategy should work well in China and Third World countries, which together comprise the largest segment of the defense contractors' market (accounting for $30 billion in sales in 1985).

High technology industry, International aspects, Advertising, Military supplies, Public contracts, Government contracts, McDonnell Douglas Corp., AlliedSignal Inc., Arms merchants, Defense contracts

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Being realistic about the Strategic Defense Initiative

Article Abstract:

Great Britain and West Germany were the first countries to sign the Strategic Defense Initiative (SDI) with the U.S., making their domestic companies eligible for contract proposals covered by SDI. SDI spending plans call for $21 billion to be expended in contracts by 1990, and projections of future spending run as high as $200 billion over the upcoming 30 years. Moreover, nations that sign the SDI agreement with the U.S. will undoubtedly benefit from the commercial potential of technological breakthroughs stirred by SDI's development. Foreign corporations interested in obtaining an SDI contract should consider opening a U.S. operation or forming a joint venture with a U.S. firm.

United States, Economic aspects, Ballistic missile defenses, Strategic Defense Initiative

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Funding Caribbean Basin Initiative activities with Section 936 funds

Article Abstract:

Congress has expanded Section 936 tax incentives for investments in not only Puerto Rico but also the U.S. Virgin Islands and qualified Caribbean Basin Initiative (CBI) countries in cases when the investments were made with the help of qualified financial institutions. A qualified financial institution is one managed under Puerto Rican law or a Puerto Rican branch of an institution under the laws of another jurisdiction.

Laws, regulations and rules, Finance, Developing countries, Caribbean Basin Initiative

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