Boeing vs Airbus - subsidies
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Title: Boeing vs Airbus - subsidies

Essay Details:

Subject: Business
Date: July 5, 2015
Level: University
Grade: B
Length: 2 / 460

Essay text:

Quotas help domestic producers at the expense of hurting the consumer with higher prices. If one is to think back on Ricardo's theory of comparative advantage, where a country should specialize in the production of a good that can be produced most efficiently, it justifies the effects of removing quotas. It leads to production moving to the most efficient producers or countries. The losers in this case are those countries, developed or developing, that can not produce efficiently. Obviously such a reality scares many countries who rely on these quotas to bring in money to their country. However, sometimes the truth hurts, as was the case with Brazil and the auto industry, where they were able to thrive behind the protection of quotas but never able to compete in the world markets...

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