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Ways to Improve Negotiating Power in International Arms Market
"Lyu, Kyu-Yeol" Korea National Defense University 2001 KNDU review Vol.6 No.1
By forming the foundation of surface-to-air weapon systems development covering portable, medium and long-range missiles due to Chun-Ma development, Korea called her attention to the importance of technology development. In other words, Korea can neutralize the efficiency of enemy actions by the air law altitude engagements in potential war arenas, secure SHORAD development capability in technical areas, and save the acquisition and maintenance costs and activate defense industry in economical areas through Chun-Ma development. Studying MND's policy is a necessity, so the the DPA can promote the negotiation power at the mass production phase by making dual companies perform R&D until the preceding phase of mass production. Then, it is possible to minimize unfavorable negotiation positions due to a sole source sontract in the technology transfer production. MND should prepare a foundation, namely, a consideration of changing the MND acquisition policy, to promote the negotiation power when a project's validity is concerned with examination of budget transfers and contract systems associated with acquisition of weapon systems. MND should also formulate a plan for information collection functions and operation strengthening so that necessary information can be effectively collected when driving a project by overseas introduction. It is unfavorable to national profits that domestic capital flow out of the country and negotiation power is deteriorated due to deficiency of technology development. Accordingly, MND should provide manufacturing companies with incentives so that they can strive for technology development. Negotiations should be enforced under the conditions that all members of the negotiation team are called into the DPA. But only the necessary personnel of the DPA directly took part in negotiations and the Army HQs presented negotiation data. The Deputy Minister for Acquisition, who is in full charge of acquisition-related tasks and responsibilities, should supervise the conception and performance of negotiation strategy. For Chun-Ma, MND sdid not take an active hand in the important situations of negotiation such as delaying tactics, insincerity of data presentation and price not yet reduction, etc., by Thomson-CSF at the negotiation phase. IF MND had given instructions to change the direction of the project, I.e., a presentation order of localization development plan to the specialized and systematized companies, and examination report order to the Army HQs regarding the project drive plan, it is estimated that lot of price reduction would have been possible.