14 Aug Government subsidies to business are common. Also common are the competitive dis
Government subsidies to business are common. Also common are the competitive disputes about who is getting an unfair advantage over whom. Consider the airliner business. The biggest commercial dispute in history is that of Boeing and Airbus, who have exchanged complaints to the World Trade Organization for years.For this weekâs discussion, choose a product category to examine. Automobiles, energy, and farm products are among those that are regularly subsidized. Then, research what subsidies that industry receives in the EU and in one other country, either in North America or Asia.Compare the two regions you have chosen. How does the subsidy or lack of subsidy impact competition in your chosen category? Do you believe any of the assistance given to local companies is âfairâ or âunfair?â Explain your reasoning.Finally, what issues might a new entry in a subsidized market encounter? How might this entry consider organizing to best compete?
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