Case Study – International Business -2 –

Case Study – International Business -2 –

Case Study 5

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 Session#5 – International Trade Framework (Theories)– Dr. Shabir Ahmad





1. 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?


2. 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.


3. 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.