The point Porch Monkey is that the Government is still going to spend X million on a particular project. They can either spend it at home or overseas. However spending it at home does not generate trips to St Louis, Los Angeles, Seattle, Toulouse and London for a large number of public servants and defence officers.
Overseas companies know this and one of their chief marketing strategies is "we are having a conference on XXXX at Paris, Montreal, Nice, San Francisco and you must attend."
Makes Bankstown and Fishermans Bend look undesirable doesn't it?
The money is still "wasted" look at the Seasprite program.