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Offset > Benefits
Offset Benefits
Offset gain importance as an element of the 'total package' that sellers have to offer, which means that maximizing of the offset benefits to the beneficiaries become a key part of the competitive process.
Industrial Policy
Governments may intervene in the offset program to address the national agenda. Explicit restrictions and a Government run approval process for foreign investment, technology agreements, and access to local markets can be used to reduce or minimise competition among offset beneficiaries in negotiations with foreign sellers.
Jobs Creation and Contract Manufacturing
The offset platform could be used to impose formal or informal offset requirements on procurement from abroad for goals like jobs creation and contract manufacturing in economies where Government has major influence (because of public ownership or regulation).
Defense Industry Base
National security often has an explicit economic component to protect or stimulate the defence industrial base through Defence Offset programs. It is seen as synonymous over time with industrial strength and national technological capability where these broader economic goals are pursued with the sustained national commitment and a breadth of policy mechanisms.
Export Tool
Offset might be regarded as a venue to position local products abroad through the business network of the offset obligor. The Governments therefore are interested in offset as a trade tool in sectors where national companies may use them to promote exports.
Public Funding of R&D
The offset could be used as a platform for the public R&D commercialization leveraging on the private firms competency to secure the deals that capture the maximum return on private investments in new technology.
Market Entry
The offset gives opportunity for local supplier to market the product or services into global supply chain by using the foreign supplier platform and is considered as a fast lane to position our product.