Airbus' Plant Relocation
Not what you're looking for?
This week, Airbus announced it was building a new plant in Alabama. Can you assist me in answering the following questions based on information in conjunction with Foreign Direct Investment. Think about the implications and strategy that Airbus has taken in moving a large plant to the U.S. given that Airbus' major competitor in the U.S. is the manufacturer, Boeing.
1. Why did Airbus pursue a physical plant in the U.S.?
2. What are the benefits and costs to Airbus' home country?
3. What are the benefits and costs to the U.S.?
Purchase this Solution
Solution Summary
The solution discusses an airbus' plant relocation.
Solution Preview
1. Why did Airbus pursue a physical plant in the U.S.?
Airbus, which is a French airplane manufacturer, as recently announced plans to open a new manufacturing facility in Mobile, Alabama, U.S. Although this can be considered a very risky move given that Boeing, its primary rival, is based in the U.S., there are a number of benefits that had probably convinced Airbus executives to establish themselves in the U.S. One of those benefits is accessibility to one of the biggest markets in the world for airplane purchases. Being in the U.S., Airbus is able to better compete with Boeing for U.S. customers. This is achieved through better visibility. Furthermore, given the weak U.S. Dollar compared ...
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.