Doing Business With the Government (No, not that Government)

United Technologies Corporation provides high technology products to the aerospace, building systems, and fire & security industries worldwide. UTC’s companies are industry leaders and include Pratt & Whitney, Carrier, Otis, UTC Power, UTC Fire & Security, Hamilton Sundstrand, and Sikorsky. International revenues contribute 61% of total revenues in 2005.

UTC REVENUES ($42.7B in 2005) Commercial & Industrial (64%) Aerospace & Defense (20% commercial; 16% military)

Whose and what rules are we playing by? Barriers to entry … and to exit QUESTIONS

In cooperation programs (e.g., JSF), mostly ours In direct sales (e.g., A400M), mostly theirs WHOSE RULES?

Import policies (tariffs and import charges Quantity restrictions Import licensing & customs barriers Standards, testing, labeling and certification “Buy National” policies and closed bidding Export subsidies WHAT RULES ARE THOSE? Investment barriers (limits on equity participation, denied access to government- funded R&D Local content and export performance requirements Restrictions on transferring earnings and capital)

State aid MOST SIGNIFICANT BARRIERS

Offset & countertrade Political considerations BARRIERS

Technology transfers Privacy restrictions ANNOYANCES