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National Security and Foreign Ownership

National Security and Foreign Ownership. Arun Sood. Types of companies. International companies Operations in multiple companies HQ in US, but foreign ownership Non-US citizens Foreign born US citizens HQ in an allied country. Why are companies interested?. Technology, access to capital

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National Security and Foreign Ownership

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  1. National Security and Foreign Ownership Arun Sood

  2. Types of companies • International companies • Operations in multiple companies • HQ in US, but foreign ownership • Non-US citizens • Foreign born US citizens • HQ in an allied country

  3. Why are companies interested? • Technology, access to capital • Exclusively focused on defense market • Growth potential • Promotes relationships • Small part of business • Usually through acquisition • Early adopters • Security hardening of apps • Helps in civilian government & commercial sales • Less travel

  4. Why does the government contract with such companies? • Access to tested technology • Best product at lowest cost • Increase competition • Build relationships with allies • Indirectly promotes US arms sales • Continuity of operations

  5. Organizational Issues • Clearances required • CEO, “n” members of board • Board given limited access to info • Disputes, mergers and acquisition • Most financial • No different than privacy constraints in HIPPA • Rigid firewalls

  6. Exports and Imports • Export Control regulations • International Trade in Arms Regulations (ITAR) • Imports • Outsourcing of HW and SW • Lenovo • Leaning towards COTS, but…

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