The term offsets is an umbrella label for a broad range of industrial and commercial compensation practices required as a condition of purchase in commercial or government-to-government sales of either military or high-cost civilian hardware. Whether commercial or military, offsets involve overseas production that results in the creation or expansion of industrial capacity in the importer's country. The compensatory forms of offset include coproduction, licensed production, subcontractor production, overseas investment, and technology transfer. Coproduction permits a foreign government or producer to acquire the technical information to manufacture all or part of a U.S.-origin article. Licensed production of a U.S.-origin article involves transfer of technical information under direct commercial arrangements between a U.S. manufacturer and a foreign government or producer. Subcontractor production of a U.S.-origin article usually involves a direct commercial arrangement between the U.S. manufacturer and a foreign producer but does not necessarily involve license of technical information. Overseas investment arising from an offset agreement involves capital contribution toward the establishment or expansion of a subsidiary or joint venture in a foreign country. Technology transfer arises from agreement to conduct research and development abroad, to provide technical assistance to a subsidiary or joint venture of overseas investment, or to perform other activities under direct commercial arrangement between a U.S. manufacturer and a foreign entity. Countries require offsets for a variety of reasons: to ease (or "offset") the burden of large defense purchases on their economies, to increase domestic employment, to obtain desired technology, or to promote targeted industrial sectors. Governments sometimes impose offset requirements on foreign exporters, as a condition for approval of major sales agreements in an effort to either reduce the adverse trade impact of a major sale or to gain specified industrial benefits for the importing country. In these circumstances, offset requirements may be direct or indirect, depending on whether the goods and services are integral parts of the product. In a direct offset, a U.S. manufacturer selling a product uses a component that is made in the purchasing country. In an indirect offset, the exporter would buy products that are peripheral to the manufacture of its product. See: Countertrade

·vi To make an offset.

II. Offset ·Impf & ·p.p. of Offset.

III. Offset ·noun A spur from a range of hills or mountains.

IV. Offset ·vt To form an offset in, as in a wall, rod, pipe, ·etc.

V. Offset ·noun In general, that which is set off, from, before, or against, something.

VI. Offset ·noun A short prostrate shoot, which takes root and produces a tuft of leaves, ·etc. ·see ·Illust. of Houseleek.

VII. Offset ·vt To set off; to place over against; to Balance; as, to offset one account or charge against another.

VIII. Offset ·noun A short distance measured at right angles from a line actually run to some point in an irregular boundary, or to some object.

IX. Offset ·noun An abrupt bend in an object, as a rod, by which one part is turned aside out of line, but nearly parallel, with the rest; the part thus bent aside.

X. Offset ·noun A sum, account, or value set off against another sum or account, as an equivalent; hence, anything which is given in exchange or retaliation; a set-off.

XI. Offset ·noun A more or less distinct transfer of a printed page or picture to the opposite page, when the pages are pressed together before the ink is dry or when it is poor.

XII. Offset ·noun A horizontal ledge on the face of a wall, formed by a diminution of its thickness, or by the weathering or upper surface of a part built out from it;

If one thing is offset by another, the effect of the first thing is reduced by the second, so that any advantage or disadvantage is cancelled out.

= balance