International Business- Airbus versus Boeing - When is Intervention Essay

International Business- Airbus versus Boeing - When is Intervention Not Intervention - Essay Example or any public body are prohibited. Again according to Article III: 4 of GATT 1994, certain favourable taxation policies are prohibited. (PÃ ©rez A. F., January 2008). Despite SCM agreements under WTO, there have been innumerable cases of dispute of violation of these agreements (DISPUTE SETTLEMENT, January2009). All major trading & industrial countries and regions, namely US, EU, Brazil, China, India, etc have got into these imbroglios. Protectionist tendencies are evident in actions of various governments of the world, though sometimes it is done in the garb of ‘saving jobs’ or promoting ‘home grown companies’. A recent report by the World Bank specifies rising protectionist tendencies in 17 out of the 20 ‘G20’ nations. In the era of ‘Open trade’, the report mentions: These do not bode well for ‘Open Trade’, liberalization or the WTO. Economists predict that due to prevailing recession in the world economy, these tendencies would rise all across the globe & many governments might find it hard to follow the liberalized trade policies. ‘Trade without discrimination’ the general philosophy underlying WTO, is being distorted by these nations. During the 2nd world war, Boeing had received many lucrative contracts from the US Department of Defense. By the 1960s Boeing was a leading aircraft manufacturer of the world. By 1970 some European countries in order to challenge Boeing’s dominance put in ‘massive Govt. subsidies’ to form Airbus. After a period Spain & Britain joined with the founding member countries (of Airbus) France & Germany. Airbus received billions of dollars as soft loans and subsidies from these countries and also from EU. Ultimately for the first time in early 2000s, Airbus was able to surpass Boeing to become the world’s leading commercial Jet manufacturer, with greater annual sales revenue.