What is "offset"?

Q: My company is in the process of buying some capital equipment and I've been asked to consider using "offset". What exactly is this and what are the pros and cons?

A: Brinley Salzmann, secretary of the British Defence Manufacturers Association Offset Group, writes: "Offset" is a mechanism increasingly used by governments when buying non-indigenous capital equipment, whereby the foreign supplier of the equipment agrees to deliver economic benefit to the buying country as a consideration for receiving...

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