Arms Industry Limited is an empirical account of the size and structure of the world arms industry with special case studies of the United States, the former Soviet Union, Canada, countries in both Western and Central Europe, and countries in the less developed world and in the Asia-Pacific region.

The book describes the various strategies which arms producing companies have adopted in order to meet the challenges and commitments of the post-cold war world. Governments are in the process of restructuring national armed forces and revising military equipment procurement plans. Military budgets are tighter in many parts of the world, affecting national arms production and arms exports.

The most common company strategies are to reduce the size of the firm and lay off employees, to mothball production facilities, to `transnationalize' firms, and to convert firms to non-military production. While there are counter-pressures to a decrease in the production and export of arms, in the future companies will probably have to reduce their production capacities and number of employees even further. The strong international pressure on governments to regulate arms exports, particularly since the 1991 Persian Gulf War, is also examined by the international group of experts who have contributed the case studies in the volume.