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Embraer vs Bombardier

1.-How do factor conditions differ for Embraer and Bombardier?


The factor conditions differ for Embraer and Bombardier in the sense that Brazil
has much higher demand for Embraer and a much lower demand for Bombardier.
2.-How does the dispute reflect the difficulties in drafting the FTAA?
Their airplane dispute highlights the difficulties facing countries from the developed
north and south.
3.-Why are government involved in this trade dispute?
Because direct subsidies by government to domestic firms are illegal at the WTO,
each company has attempted to obtain WTO approval on trade sanctions against
its competitor.
4.-Why are Canada and Brazil hesitant to apply the punitive tariffs they were
awarded?
Because Brazil and Canada are seeking to negotiate an agreement. Both have
amended their subsidies. In a growing market with increased regional flights, aging
planes and expected growth in developing countries.

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