Chapter 8 Essay Example | Topics and Well Written Essays - 250 words

Chapter 8 - Essay Examplehe government of France indicated that in order for any firm to challenge Boeings dominance and supremacy, government subsidies moldiness be engaged so that any potential competition for Boeing could present below-market cost to the end consumers. This was engaged and Airbus began to be heavily subsidize by the cut government. This trend has continued, to varying degrees, up until the present time. However, Boeing soon began to feel the impact of these government subsidies and could not continue to compete within industry that was not exactly turning a massive profit, but was also heavily subsidized. As such, Boeing lobbied and effectively garnered a high degree of promissory loans, research and development grants, and a litany of other subsidies from the United States government. What this has created is an unnatural form of competition between Airbus and Boeing through which the governments of these respective firms are ultimately in a proxy war of subsi dized nation. Naturally, this is not only unhealthy for the firms, it is unhealthy for the consumer and the overall level of product that exist within the market. The case itself reference the fact that in all likelihood, Boeing and Airbus testament continue to produce aircraft at a rather alarming rate creating a glut of commuter aircraft within the market in the next several(prenominal) years. Naturally, this evidence points to the fact that government subsidies with regards to an otherwise competitive environment oftentimes make the situation worse for the end