The European Union claims that Boeing was given $3.2 billion in tax exemptions by the State of Washington to support the Boeing Dreamliner 787 project. The United States claims that Airbus received $6 billion in loans that do not need to be repaid to support the research, development, and launch aid for the Airbus 380 Super-jumbo. These charges and countercharges at the World Trade Organization pertain to whether either firm is “dumping” the 787s and 380s brought to the export markets. These export-credit arrangements now support almost 35 percent of Airbus and Boeing sales. What category of cost must be covered by the early penetration prices in order to avoid such predatory pricing indictments?
The European Union claims that Boeing was given $3.2 billion in tax exemptions by the State of Washington to support the Boeing Dreamliner 787 project. The United States claims that Airbus received $6 billion in loans that do not need to be repaid to support the research, development, and launch aid for the Airbus 380 Super-jumbo. These charges and countercharges at the World Trade Organization pertain to whether either firm is “dumping” the 787s and 380s brought to the export markets. These export-credit arrangements now support almost 35 percent of Airbus and Boeing sales. What category of cost must be covered by the early penetration prices in order to avoid such predatory pricing indictments?
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