Question

Many countries argue that the United States Government unfairly subsidizes domestic industries through the use of military contracts. The leading manufacturing of planes in the world is the American company Boeing. This in fact is the European argument for subsidizing the second largest plane manufacture Airbus. Should military contracts be viewed as subsidies? Defend your answer.

Answer 1

Answer:No

Explanation:Contract is an agreement between two parties,this is mainly for mutual benefit. The military giving contracts to Boeing as it's air/war planes manufacturer is to enhance the efficient delivery of it's orders and help to support the growth of the American economy helping local manufacturers develop their capacity and their competitiveness in the international market. I see the contract as Mutually beneficial to both parties expectations will be met.