Airbus prices stay the same. More business for Airbus in general and Airbus´s China branches even more.
just got to ask.. what makes using the Forums quote function so hard?
One has to wonder when Airbus will be slapped with a tariff by the US,
because, considering the value of US made parts in each and every Airbus, the US economy is just as interested in Airbus selling planes as Europe is. Or because Boeing forecasts, in the 2015 one, that Europe would spend more money on aircraft as the US (1005 vs. 940 billion USD) and the US has potentially more to lose?
Would you rather see a Boeing sold? Sure...... but becoming protectionist of one company as the goal of trade policies?
why would we allow Airbus to screw us over.
Airbus has a FAL in the US, Boeing doesn´t have a FAL in Europe. Why would Europe allow the US to to screw us over?
being protected by the US might?
Since there is no military force, other than the US´s, on this planet even half the size of the EU forces, its more like we generously allow you to use our bases and, at least in Germany, even pay for those bases. So that point is rather mute.
At first it was small things but nowadays almost everything comes from China, including more and more aircraft parts.
That is the result of failed industrial policies on your side. The US economy is large enough and you have the resources, but fact of the matter is that you can not even source all the stuff you need for a manufacturing plant locally anymore, some Maschine tools you can only get from Japan, China, Germany theses days. Which makes setting up US manu´factoring even more expensive, because for those maschines transport makes up a good chunk of the costs.
Some products are not worth producing domestically. The manpower cost is not worth the final cost of the product.
That is utter nonsense. You can replace manpower with up front investment, i.e. automation, and there isn´t much you can´t automize to a point where labor becomes insignificant. This is Mainboard production in Germany https://www.youtube.com/watch?v=ylk6VMBLrvM
(Now independent EMS), a usually fairly labor intensive process, modern to the point where it competes successfully with PRC EM Services for well over a decade now.
But if your business culture and tax code makes it more attractive to set up shop in China with less up front investment, then that is what you get.
That's how it all started. One after the other, products became seemingly uneconomical to produce domestically because China can do it cheaper.
Actually being cheaper increases the market volume, one has to look at industries individually, but i would be fairly sure in many cases it would turn out that the bigger overall market creates more Sales, Marketing,Service jobs than the smaller, higher price market, would have sustained in manufacturing jobs.
Now China is making inroads into high yield industries.
Yeah, and where you can demonstrate that government money goes into lower prices, you can slap a tariff on that to undue the damage. In full compliance with WTO rules.
At the end of the day, every penny given to China is a penny of lost domestic spending power. You are giving that spending power away to a foreign country.
Also wrong, if i sell something to the US, i am getting US$. US$s are completely worthless outside of the United States, exchanging them for another currency just makes them another persons problem.
If you have US$, the ONLY things you can do with it are:
1. Buy a product or Service from the US
2. Buy US treasury bonds
3. Invest in the United States
That is it. Each and every Penny you pay to a Chinese, or any other foreign for that matter, company turns around on its heels and comes back.
This also affects Boeing indirectly in many ways.
Example 1. Less domestic spending power, less air ticket demand, less capacity, less Boeing sales in the domestic market
There is no such thing as less domestic spending power. In fact you have more money for tickets, because you got your governments budget financed by the nice people that made you Smartphone. If they wouldn´t do that, you would pay higher taxes or need to buy treasury bonds yourself. You´d have the same money to buy a ticket left as you have now, you just won´t have the smartphone.
Example 2. Less domestic spending power, less people paying taxes, more people on welfare, less tax revenue, less military spending, less Boeing sales in the domestic military market.
The trade deficit means that you are consistently using more spending power than can be justified by the value created in the US.
In Tokyo, Chinese interests have been buying up property in bulk, especially the affordable properties. As a result, young Japanese are struggling to find the afffordable properties..
Sometimes in the 80´s Real Estate in Tokyo had more combined value than the whole United States Real Estate. This ain´t new in any way, shape of form.
Quite honestly that is truly more China's problem than anything else. They can't "call the debt" or anything.
Of course they can call the debt, not directly, but if they dump their bonds on the market you better make darn sure they get the whole face value back for those, or you´d have a tiny problem selling bonds to anyone else. Once you buy bonds, you basically admit that the money your holding on to is essentially worthless for you, there is no RoI worth mentioning in those, it is just a way to park money. That only works as long it is a damn safe way to park money. On the plus side, EUR based bonds across the pond would get a more attractive way, heck... i can life with another round of negative interest rate on our bonds. Was really nice when we had that.
Domestic interest rates would go through the roof the moment your debt demands suck up the available capital. And that does kill your economy quite effectively.
This Singature is a safe space......