US Europe Trade Wars: The Case of Boeing vs. Airbus



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Code : ITF0033B

Year :
2005

Industry :Aircrafts and Ship Building

Region : :USA Europe

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Boeing and Airbus, for long, had dominated the market for large passenger aircraft. The battle often took acrimonious turns with even the governments pitching in for the companies. One such issue cropped up in late 2004. In late 2004, the US accused the European governments of subsidizing Airbus, giving it an unfair edge over Boeing. They filed a complaint before the World Trade Organization (WTO) in this regard. European Union (EU) too filed a counter-complaint alleging indirect subsidization of Boeing through offer of military and space contracts. The three month time to resolve the issue mutually expired on April 6, 2005. Now, analysts were wondering what turn the issue would take

Pedagogical Objectives:

  • Trade disputes between countries
  • Resolution of such disputes
  • Subsidies by governments to their industries
  • Business competition and the role of government
  • Infant industry argument.
    Keywords
    Aircraft Industry, Boeing vs. Airbus, International Trade & World Economy Case Study, Infant Industry, Government Subsidies, Trade Wars, International Economics, Competition, World Trade Organization (WTO), Dispute Resolution, Duopoly, Politics and Business, Managerial Economics, Market structure

    Contents :
    » 1992 Agreement on Large Civil Aircraft
    » US Argument: State Support to Airbus
    » Europe’s Counter Attack
    » US Counter Response


    Case Introduction >>


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