Globalization and Its Implications for the Defense Industrial Base

The forces of globalization present challenges, risks, and opportunities to virtually every industry in every country. One of the most important implications of globalization is its effect on the economic competitiveness of countries and particular industries. The author explores how key elements of globalization have transformed national defense industries around the world, and how these changes will affect the U.S. defense industrial base in the coming years. He focuses on elements of globalization that are relevant especially to the defense industry: the globalization of capital (finance), production, trade, technology and labor, and the changes in global governance that structure the forces of globalization. He concludes by offering ten recommendations for policymakers who have the difficult task of maximizing U.S. economic competitiveness without compromising national security.