based on the above, please answer the below questions: Where do you stand? Do you think EU
Fantastic news! We've Found the answer you've been seeking!
Question:
based on the above, please answer the below questions:
- Where do you stand? Do you think EU subsidies and soft loans to Airbus are fair? Why or why not? What advantages are gained by Airbus from free financial support from the EU governments?
- Do you believe U.S. military contracts with Boeing amount to subsidies? Have these types of payments provided Boeing with unfair advantages? Justify your answer.
- Assuming that Airbus cannot compete without subsidies and loans, is it likely that the EU will discontinue its financial support of Airbus? Is it in the EU’s interests to continue supporting Airbus? Justify your answer.
Transcribed Image Text:
CLOSING CASE Government Intervention at Airbus and Boeing Historically, United States companies such as Boeing (www.boeing. com) and McDonnell Douglas were the dominant players in the global aircraft industry. Founded in 1916 in Seattle, Boeing had many years to develop the critical mass necessary to become the world's leading aerospace manufacturer. During World War II and the subsequent Cold War years, Boeing received many lucrative con- tracts from the U.S. Department of Defense. No single country in Europe possessed the means to launch an aerospace company capable of challenging Boeing. Manufacturing European Union (EU). Airbus must repay the loans only if it achieves commercial aircraft is complex and capital-intensive and requires a highly skilled workforce. In the 1970s, the governments of France, Government Support for Airbus Since the 1940s, European governments have pursued public poli- cies based on democratic socialism. Under this system, Europeans became accustomed to government playing a significant role in guiding economic affairs. Airbus has benefitted enormously from government support. The firm has received tens of billions of euros of subsidies and soft loans from the four founding country governments and the profitability. Government aid has financed, in whole or part, every major Airbus aircraft model. European governments have forgiven Airbus's debt, financed R&D for civil aircraft projects, and provided infrastructure and huge equity infusions. Airbus is currently a stock-held company jointly owned by the British, Germans, French, and Spanish. It is based in Toulouse, France, but has R&D and production operations scattered through- out Europe. European governments justify their financial aid to Airbus on several grounds. First, Airbus R&D activities result in the development of valuable new technologies. Second, Airbus provides jobs to some 55,000 skilled and semiskilled Europeans. Third, its Germany, Spain, and the United Kingdom formed an alliance, sup- ported with massive government subsidies, to create Airbus S.A.S. (www.airbus.com). By 1981, the four-country alliance succeeded in becoming the world's number-two civil aircraft manufacturer. Airbus launched the A300, among the best-selling commercial aircraft of all time. The Airbus A320 received more than 400 orders before its first flight, becoming the fastest-selling large passenger jet in aviation history. By 1992, Airbus captured roughly one-third of the global commercial aircraft market. Airbus surpassed Boeing in orders for new aircraft in most of the 15 years through 2015. CLOSING CASE Government Intervention at Airbus and Boeing Historically, United States companies such as Boeing (www.boeing. com) and McDonnell Douglas were the dominant players in the global aircraft industry. Founded in 1916 in Seattle, Boeing had many years to develop the critical mass necessary to become the world's leading aerospace manufacturer. During World War II and the subsequent Cold War years, Boeing received many lucrative con- tracts from the U.S. Department of Defense. No single country in Europe possessed the means to launch an aerospace company capable of challenging Boeing. Manufacturing European Union (EU). Airbus must repay the loans only if it achieves commercial aircraft is complex and capital-intensive and requires a highly skilled workforce. In the 1970s, the governments of France, Government Support for Airbus Since the 1940s, European governments have pursued public poli- cies based on democratic socialism. Under this system, Europeans became accustomed to government playing a significant role in guiding economic affairs. Airbus has benefitted enormously from government support. The firm has received tens of billions of euros of subsidies and soft loans from the four founding country governments and the profitability. Government aid has financed, in whole or part, every major Airbus aircraft model. European governments have forgiven Airbus's debt, financed R&D for civil aircraft projects, and provided infrastructure and huge equity infusions. Airbus is currently a stock-held company jointly owned by the British, Germans, French, and Spanish. It is based in Toulouse, France, but has R&D and production operations scattered through- out Europe. European governments justify their financial aid to Airbus on several grounds. First, Airbus R&D activities result in the development of valuable new technologies. Second, Airbus provides jobs to some 55,000 skilled and semiskilled Europeans. Third, its Germany, Spain, and the United Kingdom formed an alliance, sup- ported with massive government subsidies, to create Airbus S.A.S. (www.airbus.com). By 1981, the four-country alliance succeeded in becoming the world's number-two civil aircraft manufacturer. Airbus launched the A300, among the best-selling commercial aircraft of all time. The Airbus A320 received more than 400 orders before its first flight, becoming the fastest-selling large passenger jet in aviation history. By 1992, Airbus captured roughly one-third of the global commercial aircraft market. Airbus surpassed Boeing in orders for new aircraft in most of the 15 years through 2015.
Expert Answer:
Answer rating: 100% (QA)
solution of this problem is given below 1 I would stand on the Airbus side and would like to stress that the EU subsidies and soft loans to Airbus are fair It is because there is nothing wrong for EU ... View the full answer
Related Book For
Implementing Organizational Change Theory into Practice
ISBN: 978-0132729840
3rd edition
Authors: Bert Spector
Posted Date:
Students also viewed these accounting questions
-
Where do you stand on the various debates and controversies surrounding going green? Is protecting the planet a business's responsibility or does it distract from their main purpose? Can every...
-
Describe corporate social irresponsibility. Where do you stand on the issue of CSR v CSI? Do corporations have a right to ignore their responsibility to some stakeholders in order to add to the short...
-
Where do you think you stand with respect to generalized self-efficacy? Are you fairly confident that you can accomplish most tasks you set out to do? Or do you have doubts about your ability to...
-
This histogram shows the times, in minutes, required for 25 rats in an animal behavior experiment to successfully navigate a maze. Which of the following best describes the shape of the histogram? A....
-
Estimate a GARCH (1,1) for the S&P 500 index, using data from January 1999 to December 2003.
-
An increasing number of Americans are moving to a warmer climate when they retire. To take advantage of this trend, Sunny Skies Unlimited is undertaking a major real estate development project. The...
-
Calculate the maximum power and LCOE for a parabolic collector similar to that in Example 8.1, but assume that an evacuated tube receiver is used (case E in Figure 8.18a). Example 8.1 Figure 8.18...
-
Jane White has recorded the following sales figures for last year for her business: January, $35,645; February, $35,456; March, $31,270; April, $32,129; May, $34,456; June, $35,256; July, $36,218;...
-
A two-dimensional array consists of patients' names and IDs in a private clinic is given in Figure 4. Replace "YourName" and "YourStudentNumber" with your particulars. data[9][2] {"YourName",...
-
Values for the NASDAQ composite index during the 1,500 days preceding March 10, 2006, can be downloaded from the authors web site. Calculate the one-day 99% VaR and the one-day 99% ES on March 10,...
-
Freda Enterprises is considering replacing a machine that is presently used in its production process. The following information is available: Original cost Remaining useful life in years Current age...
-
Labor force growth is the great unknown in forecasting unemployment rates because people's reactions are very difficult to gauge. For example, during recessions, will people not bother looking for a...
-
Find the slope and y-intercept of each line. 1. y=-13x Slope y-int 2. 5x-y+2=0 Slope y-int 3. -3x+2y-4-0 Slope y-int
-
Read "Universal basic income: a solution to a looming problem." write a 1500-word analysis of how well or poorly Munger presented his argument in this essay. Universal basic income: a solution to a...
-
A. Organizational and managerial structures can create a synergy with Information System (IS) to create a unique sustained competitive advantage. With references to Porters Five Force model, state...
-
Which would you rather have, if you are able to choose between two possible earning outcomes: A: Your current yearly income is $100,000; others earn $50,000 B: Your current yearly income is...
-
Setup or adjust your workstation, desk or work area in accordance with ergonomic considerations, the practical layout of necessary documents and occupational health and safety requirements. a. Use...
-
Find the cross product a x b and verify that it is orthogonal to both a and b. a = (t, 1, 1/t), b = (t 2 , t 2 , 1)
-
1. What went wrong? How can you explain how the technology actually led to more rather than fewer mistakes? 2. What theories of change implementation would have helped the administrators at the...
-
Explore the challenges facing Stephen Elop at Nokia. What can he do to revitalize the company in the US smartphone market?
-
Are excellent green leaders the same as excellent leaders or are important additional skills needed?
-
Consider the following 1. Safety valve 2. Steam trap 3. Steam separator 4. Economiser Among these the boiler accessories would include (a) l, 2 and 3 (b) 2, 3 and 4 (c) l and 4 (d) l, 2, 3 and 4
-
Injector is used in small boilers (a) to inject steam to increase its capacity (b) to inject water like a feed pump (c) to inject air to the furnace (d) none of the above
-
Match List I and List II and select the correct answer using the codes given below the lists List I (Type of boiler) A. Babcock and Wilcox B. Lancashire C. La-mont D. Cochran List II (Classification...
Study smarter with the SolutionInn App