Final answer:
The statement is true. Global companies can face demands for offsets in international markets such as China even when the transactions are civilian in nature. This includes contributions to local economic growth and technology transfer.
Step-by-step explanation:
The statement that global companies can face demands for offsets in markets such as China, even when transactions do not involve military procurement, is True.
Offsets can occur in various industries and are not limited to the military sector. As multinational corporations engage in international trade and investment, they often encounter various forms of offset agreements that may require them to contribute to local economic development or technological advancement as part of the business transaction. This could include, for instance, setting up production facilities, transferring technology, or generating local employment. Moreover, as mentioned, China's increasing purchasing power and environmental concerns could influence the nature of such agreements, pushing for offsets that also consider environmental sustainability.
It is not just military expenditure that may influence these relationships but also other strategic and economic considerations. Global companies, therefore, must be prepared to navigate these complex challenges in order to successfully operate and compete in important international markets.