Discussion
Defence expenditure of a state is primarily determined by which of the following ?
Answer: C
Defence expenditure is primarily determined by threat perception.
A state decides how much to spend on its forces according to the threats it expects to face, from potential adversaries, insurgencies or terrorism, and the forces it needs to deter or defeat them. A higher perceived threat, such as a hostile neighbour's military build-up, drives spending up.
Foreign policy shapes the threat picture, and technology and communications affect what the spending buys, but the primary determinant of the size of the defence budget is the perceived threat.
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