The Impact of the Deteriorated Political and Security Situation on the Financial Stability of Arms Companies Operating in an Oligopolistic Market Environment

Abstract

Economic measures, stability, efficiency, and effectiveness of arms expenditure are among the sources of national defense. The technological level of the industry, the ability of firms to carry out their development and innovation, together with the state's ability to specify and acquire requirements for new technologies promptly, in the short and long term, form the structure of factors that significantly determine success in a potential war conflict. This paper, conducted by a team of experienced researchers, aims to assess whether and to what extent the current deteriorated international and security situation impacts the employment and revenues of selected arms companies in the Czech Republic. The paper presents the results of the first research phase on 18 technological a rms companies, commercial firms or manufacturers of technologically advanced products, which have been operating on the market of special military and security equipment for a long time. In the case study, we present a qualitative analysis of the impact of government demand and human and material capital on the level of potential products.