funds - suggest. The WTO can treat these two flying...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
What do you think would be a fair and equitable outcome from the World Trade Organization? We believe there can be no fair and equitable outcome for the following reasons: 1. Loopholes will always exist within agreements as already been demonstrated by the transfer of aerospace funds for the use of commercial air jets or the indirect subsidies harnessed by Airbus. 2. When one party uses an “illegal” means for R&D or construction, the other side will promptly use their own ways to prop up their programs. We think this is a dishonest yet healthy means of competition. 3. The US has a GDP of about 14 trillion whereas the combined GDP of spain, frace, the UK, and Germany is only 10 trillion. From the case we can see the US has injected other funds not specified in the 1992 agreement into their commercial air jet programs and it would not be very difficult to implement more. Although there will never be a clearcut solution to this problem there are some things we
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: suggest. The WTO can treat these two flying powerhouses like US candidates. There simply needs to be a ceiling for how much money these two organizations can receive on a year to year basis with any other outside funds considered illegal. A breech in the contract could mean severe penalties and as long as the ceiling is not broken, the funds can come from anywhere. In addition, for payback purposes both companies should pay back their funds in the same time frame with a similar set interest rate pegged to the dollar. Therefore there wont be any disputes about lower interest rates or longer payback perioeds. Of course the most difficult part of this plan will be deciding the ceiling. Currently Airbus has spent more for R&D and is a bigger company, but as stated before the US can easily provide more income to Boeing. Therefore both companies should set their standards to one that Airbus sets within reasonable means....
View Full Document

Ask a homework question - tutors are online