government intervention at airbus and boeing case study answers


  • What started the US EU dispute over Boeing and Airbus?

    It started in 2004, when the US filed a case at the WTO against the EU, arguing that the bloc was illegally subsidising the European Large Civil Aircraft (LCA) manufacturer Airbus. The EU also filed a complaint against the US in May 2005, for its unlawful support to Boeing.
  • What is the Airbus Boeing dispute?

    The US and the EU have agreed a truce in a 17-year trade dispute over subsidies for Boeing and Airbus. Under the agreement, both sides will remove taxes on $11.5bn (?.2bn) of goods, including wine, cheese and tractors, for five years.
  • What is the market structure in which Airbus and Boeing operate explain your answer using the market characteristics for the two firms Airbus and Boeing?

    Answer A) Airbus & Boeing operate in Duopoly ( oligopoly ) market structure because it has been mentioned that Boeing & Airbus are the only 2 firms which manufacture planes in the world.
  • In order deter further entry into industry; Boeing and Airbus need to raise the entry barriers by making it more costly. Simply put, the greater the cost potential competitors (Comac, Bombardier)must bear to enter the industry, the greater thebarriers to entry, and the weaker willingness to do so.
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