Airbus vs. Boeing
Which two major companies dominate the global commercial aircraft market?
Airbus and Boeing
What is the term for financial assistance given by a government to support an industry or company?
Subsidy
Which international organization settles disputes about subsidies and trade between countries?
World Trade Organization (WTO)
Subsidies can make aircraft prices ______ for airlines.
Lower
Should governments intervene in strategic industries like aerospace? (Yes/No question for discussion)
Yes
In which country is Airbus headquartered?
France (part of the EU consortium)
What type of loans did European governments provide Airbus to help launch new aircraft programs?
Launch aid (repayable loans)
What two regions were involved in the Airbus-Boeing WTO dispute?
The European Union and the United States
Government support can give companies a competitive ______ in the global market.
Advantage
What is one ethical concern about providing subsidies to large corporations?
Unfair advantage, misuse of public funds
Which company launched the A380, the world’s largest passenger aircraft?
Airbus
Which U.S. agency provided tax breaks and military contracts that indirectly benefited Boeing?
U.S. government / Department of Defense
In 2019, the WTO allowed the U.S. to impose tariffs on EU goods in retaliation for subsidies to which company?
Airbus
What is one potential negative effect of subsidies on global competition?
Market distortion / Unfair competition
What type of policy agreement could help reduce subsidy disputes between the U.S. and EU?
Bilateral agreements / Global code of conduct
What U.S. company is known for producing the 737, 747, and 787 aircraft?
Boeing
True or False: Both Airbus and Boeing have received some form of government support.
True
In 2020, the WTO authorized the EU to impose tariffs on U.S. goods for subsidies to which company?
Boeing
By lowering costs, subsidies can encourage companies to invest more in ______.
Innovation / R&D
Why might developing countries view subsidies in rich countries as unfair?
They can’t afford to subsidize their own industries, creating unequal competition
Name one key competitive advantage that Airbus gained through European government support.
Access to low-interest loans (“launch aid”) that reduced development costs
What is one argument in favor of government subsidies in the aerospace industry?
They protect jobs, foster innovation, and help domestic firms compete globally
What was the long-term goal of both sides in the Airbus–Boeing trade dispute?
To reduce or eliminate unfair subsidies and create a level playing field
What economic concept refers to how subsidies can cause inefficient resource allocation?
Market distortion or deadweight loss
What is the fairest way to regulate subsidies in global aerospace?
subsidies