Page 108 - Five Forces of Americanisation Richard Hooke 04072025 final post SDR1

The UK Defence Industry in the 21 Century
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The Five Forces of Americanisation

Appendix 4

Trading off national security and defence spending priorities
Figure 1 Figure 2

The war in Ukraine and new America First trade policy has infused an established world order with uncertainty,
increasing the pressure on Governments to increase national security. However, globalisation has also increased
pressure on governments to reduce public spending. (1)

Working with industry enables governments to reconcile these contradictory pressures while building value.
Sustaining a domestic defence manufacturing capability increases a nation’s self-reliance … but it is expensive.
Imports may reduce overall cost but may compromise international diplomatic policy (2)

Figure 3 Figure 4

The trade in defence equipment enables governments to adopt a more flexible response to resolving the trade-
off between spending and security.(3) Offsets arrangement help the importing nation to develop its domestic
industry, either in defence or in other sectors. (4)

Figure 5 Figure 6

Whilst international security and economic alliances can limit the exporter’s market, it strengthens diplomatic
ties between nations (5). A resilient Defence Industrial Base strengthens the exporter’s credibility in projecting
influence and enabling reciprocity (6)

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