If the US or Germany get in situation they need thousands of those - I guess their cost will fall to under 1M.
If the US or Germany get in situation they need thousands of those - I guess their cost will fall to under 1M.
Also “and margins” seems like a stupid thing to add. Margins are high during peacetime and wartime alike. And it’s not parallel to bribes / kickbacks which are corrupt and illegal. Margins are the natural outcome of capitalism + monopoly.
Having S Korean competition means those margins would likely drop over time.
I have been advisor to some people signing the deals. I would say that depending on the project in my slice of the industry at least 25-30% were outright redistributed to various stakeholders.
My figures are from ~2005.
Countries with high margins during wartime don't typically win wars against peer powers. Cf nazi germany vs the soviet union. This is typically a luxury you see when rich countries fight poor ones (in absolute terms, including capital in the form of production capacity and tech IP/know-how)
Perhaps when fighting foreign jaunts against a minnow. Preserving high margins in an grinding, existential war against a peer would be considered anything from unpatriotic, to outright illegal war profiteering, and carries a real risk of the shareholders losing control and/or ownership of the organization through various war-time instruments.
Germany is literally thinking there will be war and getting ready for it. The war is more likely then 4 years ago.