Discussion Board and Faith & Integration Replies

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Offsets

            The definition of an offset, according to Halil Basaran, “is the contract to offset the advantages given to the contractor by the main contract. The main contract is a sort of privilege for the supplying company and the second contract (offset contract) offsets that privilege.” (Basaran, 2017).

            In the article that I chose, “Implications of Offset Agreements”, Basaran explains how international law and offset agreements are intertwined. He explains that because offset agreements run together with governments and corporations, there is an enormous emphasis on how they conduct business and uphold their contracts. Failure to do so can, and sometimes does, result in corruption between governments since much of each country’s offset are within defense companies. Basaran used an example of how offsets were paid through defense-type transactions just after WWII, between the United States of America and West Germany, “--offset practices began with the deal between the United States of America and West Germany in the 1950s, whereby West Germany was required to buy American military equipment and services to ‘offset’ the expenses America incurred in stationing of troops in West Germany.” (Basaran, 2017)

            International business and offsets have a close relationship. The two very different terms help our countries interact with each other. Through these transactions we can help developing countries with the offset of debts and benefit of other resources. As we continue to import and export between one another, we allow developing countries the chance to be apart of the global exchange of goods and services.

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