Boeing and Airbus: Duopoly in Jeopardy?

For decades, Boeing and Airbus have struggled for dominance in the large commercial aircraft market. In 2010 and 2011, the World Trade Organization ruled that each firm has received illegal subsidies from the governments of the United States and the European Union, which have enhanced their competitive positions. This paper considers the nature of these rulings and the future competitive environment in the global jetliner industry

U.S. Steelmakers in Continuing Crisis

How do you revive the steel industry and protect workers as well? The authors present a comprehensive analysis of the evolving industry, new protectionist measures, and better ideas about helping the threatened steelworkers.

Boeing-Airbus Subsidy Dispute: A Sequel

After intensifying in the 1980s and 1990s, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry again heated up in 2004. This time, however, the stakes were higher because both nations sued each other at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as both companies spar for dominance in the highly competitive industry of commercial aircraft. This paper provides a sequel to Boeing-Airbus Subsidy Dispute: An Economic and Trade Perspective, a paper written by these authors and published in the October-December 2001 issue of Global Economy Quarterly. The initial paper analyzed the trade frictions between Boeing and Airbus regarding governmental subsidies and its implications for the conduct and performance of the two companies in the commercial aircraft industry. This paper extends the analysis by discussing recent developments in the commercial aircraft industry, the subsidy dispute of Boeing and Airbus at the World Trade Organization, and the future health of the commercial jetliner industry

U.S. Steelmakers in Continuing Crisis

How do you revive the steel industry and protect workers as well? The authors present a comprehensive analysis of the evolving industry, new protectionist measures, and better ideas about helping the threatened steelworkers

Competition in the World Jetliner Industry

Yes, you can manage trade, say these authors. Consider the case of Europe\u27s Airbus

WEBS, SPDRs, and country funds: an analysis of international cointegration

Prior empirical studies analyzing linkages between international equity markets have suffered because suitable real-world financial instruments representing national equity markets were not available for trading. In March 1996, World Equity Benchmark Shares (WEBS) began trading on the American Stock Exchange. WEBS are open-end index funds that trade like closed-end index funds; they are designed to closely track the international indices developed by Morgan Stanley Capital International. This study utilizes WEBS along with Standard & Poor’s Depository Receipts (SPDRs) to avoid the previously encountered problems associated with nonsynchronous trading, fluctuating foreign exchange rates, non-liquidity, trading restrictions, and index replication. Results indicate that substantial pairwise cointegration exists among the 18 market indices as well as between individual closed-end country funds and their own-country WEBS. In addition, Granger causality tests indicate the existence of short-term causal relationships, suggesting market inefficiencies and the possibility of short-run arbitrage opportunities

Boeing-Airbus Subsidy Dispute: A Sequel

After intensifying in the 1980s and 1990s, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry again heated up in 2004. This time, however, the stakes were higher because both nations sued each other at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as both companies spar for dominance in the highly competitive industry of commercial aircraft.This paper provides a sequel to Boeing-Airbus Subsidy Dispute: An Economic and Trade Perspective, a paper written by these authors and published in the October-December 2001 issue of Global Economy Quarterly. The initial paper analyzed the trade frictions between Boeing and Airbus regarding governmental subsidies and its implications for the conduct and performance of the two companies in the commercial aircraft industry. This paper extends the analysis by discussing recent developments in the commercial aircraft industry, the subsidy dispute of Boeing and Airbus at the World Trade Organization, and the future health of the commercial jetliner industry.

Boeing and Airbus: Duopoly in Jeopardy?

For decades, Boeing and Airbus have struggled for dominance in the large commercial aircraft market. In 2010 and 2011, the World Trade Organization ruled that each firm has received illegal subsidies from the governments of the United States and the European Union, which have enhanced their competitive positions. This paper considers the nature of these rulings and the future competitive environment in the global jetliner industry.

The impact of financial crises on international diversification

Benefits from international diversification are well documented; low correlations between domestic and foreign securities allow for the construction of portfolios with improved return/risk characteristics. However, recent evidence indicates that correlations among international security markets are related to these markets' volatility, thus reducing the efficacy of international diversification at the time it is needed most. The turmoil in capital markets following the recent Asian financial crisis provides a vivid illustration of these phenomena. An examination of the correlations and volatility of 11 foreign markets reveals that potential diversification benefits changed dramatically for the period following the devaluation of the baht by Thailand in July 1997. Specifically, both the correlations among 11 country indices and their volatilities increased substantially following the July devaluation. Interestingly, index funds, represented by World Equity Benchmark Shares (WEBS), dominated closed-end country funds prior to the devaluation, but were dominated by the closed-end funds (CEFs) subsequent to the devaluation