International Trade: Airbus in America
“North America is the biggest market for single-aisle planes. Airbus has forecast that nearly 70 percent of new jet sales worldwide over the next 20 years — 19,200 aircraft worth $1.4 trillion by 2030” — NY Times, June 28, 2012
a) Airbus, a European plane maker, has announced plans to build its first assembly line in the United States in Mobile, Alabama. What factors (mention three factors) that support the decision of Airbus producing in America?
b) Boeing is Airbus’s main competitor and often is favored in Congress because it’s made in America. How would this event affect Boeing?
c) What could the U.S. do to increase its comparative advantage in the production of goods and services that require high-paying jobs?
Use as many economic principles (from the textbook and other sources) as you can in answering the questions.
As a guideline, each of the 10 points will be derived from the following:
Post your answer (400-500 words) to
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