Economics of Industry - Market structure in the aircraft manufacturing Research Paper

Economics of Industry - Market structure in the aircraft manufacturing industry - Research Paper Example (Boeing, 2011) Boeing, then expanded by acquiring Vertol Aircraft Corporation in 1960. (The Boeing Company, 2011) In 1996, Boeing took over  Rockwell’s aerospace and defense units. Then in August 1997, Boeing merged with  McDonnell Douglas. This merger allowed Boeing's leadership to increase as it joined with the line of Douglas airplanes. (The Boeing Company, 2011) The tax breaks given to Boeing by the US government have also helped in the expansion of the firm. It is believed that subsidies for the defense wing of Boeing have also helped with the commercial side of aircraft manufacturing. (Irwin & Pavcnik, 2003) In 2002, Boeing’s market share was 54%, however it is now struggling to maintain it. (Taylor & tillman, 2002) Airbus Airbus  is a  subsidiary of  EADS, European Aeronautic Defense and Space Company. (Airbus, 2011) It was a government initiative by France, Germany and UK in 1967. It started off as a  consortium  of aerospace manufacturers,  Airb us Industry. The combination of the European defense and aerospace companies in 2000 led to a company  being established in 2001. BAE Systems and EADS transferred their assets to Airbus  SAS, for ownership in that company. EADS  owned 80% and  BAE Systems  20%. (BBC News, 2000) In October 2006, BAE sold its ownership to EADS. Airbus Industry was officially recognized in December 1970. It is believed that Airbus has only been successful due to protection used by the European countries and a large launch aid. WTO reached a decision in August 2010 and May 2011 that Airbus had indeed received unacceptable government subsidies from several European countries which resulted in lower sales of Boeing aircrafts. (New York Times, 2011) Airbus’ market share has been steadily increasing sine its share of 46% in 2002. (Taylor & tillman, 2002) Product Development Boeing Boeing has approximately 12,000 commercial aircrafts in use globally, which constitutes around 75 percent of th e world fleet. Through Boeing Training & Flight Services, it trains maintenance and flight staff in the 100-seat-and-above airliner market. Boeing has over 159000 employees, working in 71 countries (The telegraph, 2011). Through this diverse workforce and extensive training, the company’s product development ability has increased. In aircraft manufacturing, focus has always been on developing low cost, high quality aircrafts. Hence, approximately half of the current commercial aircrafts will be replaced in the next 20 years due to technological obsolescence and inefficiencies. This will increase the demand for new ones. Approximately 1,362 commercial aircraft orders were placed in 2010, greater than twice the amount placed in 2009. (Bombardier Commercial Aircraft, 2011) Emphasis is also on fuel efficient and environmentally friendly productions. Boeing, together with Air New Zealand has undertaken research on sustainable alternatives to conventional fuel. (Boeing, 2011) Exten sive and expensive research allows better versions of existing aircrafts to be developed and new aircrafts to be launched in this oligopolistic market. Boeing has also resorted to outsourcing its production to Japanese suppliers including  Mitsubishi Heavy Industries  and  Kawasaki Heavy Industries. The use of advanced technology has allowed Boeing to enhance its production capabilities. (Reuters, 2011) Airbus An internal air transportation system is used to airlift

Why people on goverment assistance should be drug tested to recieve Essay

Why people on goverment assistance should be drug tested to recieve assistance - Essay Example Pollack shows that in the states of Mississippi and Illinois, families receive varying benefits meant for poor families, especially single mothers. For example, in Illinois, the monthly based amount for the temporary assistances to needy families stands at 432 dollars compared to 170 dollars in Mississippi. The varying amounts received by poor families is seen a problem, additionally, there has been an increasing number of families requesting for benefits. Despite the rising problems of tackling increasing poor families, a number of states have introduced the idea of drug testing. This is an act whereby a member of the family requesting for benefits is put into test to ascertain if he or she is under drug influence. Pollack argues that the screening done by the government on families to receive benefits meant for poor does not address anything. According to the author, some states have achieved less or nothing despite their efforts to bring forth this matter of drug testing. The drug testing done on states like Michigan has failed or achieved less for the last 13 years according to the author. Additionally, legislators in Michigan are hoping that the act of drug testing for benefits is best and will be beneficial since it has been done in 29 other states. With the 29 states, 8 states have benefited from drug testing. According to Spencer, drug testing is currently undergoing in 28 states. The legislators in those states explain that drug testing must be done in order to lock out individuals requesting for benefits yet they are on drugs. In Oklahoma, the Republican Governor Mary Fallin explains that drug testing is done so as not to humiliate taxpayers. Parts of the taxes paid by the Oklahoma citizens are used to help the poor in terms of Temporary Assistances to Needy Families. The Governor explains that in order to avoid funding or subsidizing drug abuse by some of the individuals requesting for assistances from the government, drug testing must be done. This shows that legislators are supporting drug tests on those asking for government assistances based on the idea of drug abuse by those who benefit from the package. The governor of Oklahoma says that tests will be done and those who pass the drug testing are provided with the benefits while those who fail or refuse the test will be barred from getting the benefits until they reform. The process of drug test is also happening in Tennessee with the main focus being drug abuse by the individuals requesting for government assistance. Spencer also explains that drugs have brought problems to the society especially poor people. In addition, drug abuse is also problematic to the working class. There have been also increasing number of people requesting for help from the government to support themselves since the 2008 financial crisis. The fact is that there has been a rise in the number of the unemployed, cost of goods, housing and health care insurance. The government has to address all tho se cases with the help of funding. The idea of drug testing arises because high numbers of poor people in the society are drug users. Drug abuse can only be broken on those requesting for benefits if they are sure that they are to undergo the testing before they receive the benefits. Additionally, the government is fighting to address all the cases mentioned above and others like unemployment benefits. Millions of dollars have to be used in addressing those issues inclusive of drug abuse. In order to reduce these cases, drug testing is important as it is one way of reducing drug abuse. Additionally, taxes from tax payers will be channeled elsewhere like unemployment benefits and welfare benefits. Furthermore, Carpenter (1), explains that tighter budgets and high demands by the people from the