By Steven McGuire
Learn pupil Steven McGuire examines an important sectoral dispute among the USA and the ecu neighborhood often called the "Airbus dispute". McGuire explores how the dispute was once settled diplomatically with no each side resorting to antagonistic countermeasures. possibly all involved remembered the Boston Tea get together.
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Additional info for Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations
18 The secret of American success lay in the ability to mate a variety of technologies into a successful product. '20 Nonetheless, business prowess aside, this success owes much to the privileged position of the aerospace industry vis-a-vis government in the Cold War era. While the United States saw an explosion in R&D funding following the war, economic sectors benefited unevenly from government involvement. 22 The degree to which the American government was prepared to underwrite research and development expanded rapidly after 194S.
The aircraft industry makes the largest contribution to US manufacturing trade. 1 Both Boeing and MDC employed thousands of workers and their chain of suppliers employed many thousands more. The US aerospace industry was in many respects the flagship of American technological leadership. '2 The dispute with Europe over Airbus Industrie was all about preserving this star performer. The creation of the Airbus consortium in 1967 did not arouse many concerns in Washington. European firms had a disastrous history in the commercial airline business.
However, while the market was large, it was also mature and its growth rate began to slow during the 1970s. From annual growth of 7 per cent, the 1970s saw passenger miles increase an average of only 5 per cent. In the meantime, foreign markets, which had lagged behind the US both in absolute size and growth rate, began to catch up. 68 As a result, Boeing, MDC and Lockheed, had to focus more and more sales activity outside the relatively known confines of the United States. US firms were used to dealing with large, relatively wealthy US airlines that had long standing relationships with the manufacturers.
Airbus Industrie: Conflict and Cooperation in US-EC Trade Relations by Steven McGuire