offsets policy

An offsets policy is a government strategy that requires companies to invest in the local economy or communities when they make large purchases, often in defense or infrastructure. For example, if a country buys military equipment, the seller might need to invest in local jobs, training, or technology to balance the deal. This policy aims to enhance economic growth, create jobs, and develop skills in the buying country, ensuring that the benefits of significant financial transactions extend beyond the immediate purchase. It encourages foreign companies to contribute to the local economy while fulfilling their contractual obligations.