International Business Versus Patriotism
March 10, 2008 by Jean Mercedes
Filed under Business
The days of the rallying cry “Buy American” are gone. The Pentagon has decided to purchase the next generation of tanker aircraft from the European Aeronautic Defense and Space Co. (EADS) instead of from Boeing and, this being an election year, politicians are fuming.
Just a quick scratch at the surface, however, shows how pervasive international business is these days. In reality, there are very few truly “American” or “100 % European” companies any more. If this U.S. Air Force contract for $35 billion goes to EADS, some jobs will be created in Europe, but the majority of jobs, about 25,000 of them, will be created in the U.S. Not only will the tankers be assembled in the U.S., but the engines will come from General Electric production facilities, most of which are in the U.S.
The defense industry is large and like all large industries, it is global. The Air Force chose the supplier which met their requirements and the best cost. Isn’t that what we expect the government to do with our tax money?
What is your opinion? Does the U.S. Military have an obligation to purchase equipment only from U.S. Companies? How would you define a U.S. Company?
Image from www.af.mil.
Chris has mentioned in earlier postings how different the corporate laws are from state to state in the US. You want a definition of a US company and I feel that answer is found in the statues of the individual states within the US. Certainly a US company is chartered by the Secretary of State of one of the US states. With that definition EADS is not a US company and the US Air Force should be so notified.