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 the posted DQ responding to the matter asked, instead of repeating the question or not attending to the question. Substantive answers include making comments using concepts found in the assigned reading materials or offering examples from your experience. Hence merely providing a brief “yes, I agree” or “no, I do not agree” postings are not adequate posts
- Write in correct grammar; any errors will translate to a deduction in points.
- Check for the spelling; any errors will deduct points.
- Your responses must be substantive that include your own thoughts, supported with research (at least two external sources other than textbook, and you must quote these sources).
- You get one point when you respond to one of your classmates’ posts, also with substantive comments (100-200 words).
- One more point when you respond to another classmate’s post (100-200 words).
- One point for collaboration. It is intended that your involvement in discussions be of a collaborative nature. Collaboration spirit is quite different from confrontation.
- Deadline: due date for each DQ will be on Monday night 11.55pm, but you are free to make your comments prior to Monday night. One point will be deducted for each day of late submission.
- Creativity: offer a creative solutions or ideas or impact on other fields, such as: environmental impact, in addition to the obvious socio-economic impacts of each topic.
- Offer a future recommendation or alternative options for the future with regard to the topic in question.