Group #6Cleber Hamada, Raghav Malhotra, Alejandro Chinchilla, Mayank Mittal & Kristoffer Sletten

Introduction -The world's leading aerospace company -Boeing Commercial Airplanes -Boeing Defense, Space & Security -Operations in more than 70 countries -Customers in more than 90 countries -Revenues of 68,281 M (2009) -Private company traded and listed in the U.S. -Largest U.S. exporters in terms of sales -Headquartered in Chicago -Employs 160,000 people

Employment By LocationJune 24, 2010 Alabama2,798 Arizona4,715 California23,759 Kansas2,259 Missouri15,55 Pennsylvania6,145 Texas5,666 Washington72,077 Other Locations26,887 Total Company159,856  Indirectly supports in additional 600,000 jobs nationwide – e.g. subcontractors

Culture & values People are Boeing's most vital asset Non-discrimination and harassment Freedom of association Environment, health and safety Work environment and compensation Hours of work and work scheduling Expectation for suppliers Forced labor and child labor

Trade Dispute USA vs Europe 1980’s Airbus obtained all its capital from European government to launch new aircraft. A large amount of Airbus subsidies have been channeled toward the development of commercial jets Airbus received $26 billion. 75% of development cost was provided by European government.

Competitive Advantage Heavy discounts ranging anywhere from 10 to 35% for the Airbus customers Airbus finances 80% 7% over a 10 year period Boeing finances only 40% 8.5% over a 10 year period Favored by European airline as it appears from the order book of A380 The motive of subsidies is to displace the sale of Boeings, constituting serious prejudice to the interests of the United States

$240 million for the or ER $250-$280 million depending on the configuration for the A380 Airbus has a seating capacity of 800 passengers as compared to Boeing’s 450 passengers Airbus has unfair competitive advantage using the subsidies thereby

Today WTO concluded that Airbus used subsidies from France, German, Spain and Britain Airbus took market share illegally At interest rate of 15% to 16% in the early years, Airbus would have accumulated a massive level of debt WTO requested that EU help European companies without adversely affecting American Companies

Conclusion In all, both Boeing and the United States Trade Representative consider this a victory. GUILTY

References HILL. W. L. C., International Business, competing in the global marketplace, McGraw-Hill companies, New York, 8 th edition. delivers-victory-for-boeing-us-trade/ delivers-victory-for-boeing-us-trade/ html html ?_r=2 ?_r=2