Luftansa Case
...orcast.. The fact that Airbus has been so successful in capturing large portion of aircraft market away from Boeing gives reassurance to Luftansa not to risk foreign exchange transaction with Boeing when it can simply rely on its europian currency (now called Euro). In a world of economic monopoly and superpower, it is worth mentioning the fact that beside some basic financial facts and concepts, there are politico-economical issues to be considered also. Boeing is extremely important to the US economy, being its leading exporter and thus indirectly creating a demand for US dollar in foreign exchange market, therefore boeing’s sales competition have been subject to some intense diplomatic pressures in the past by the US administaration. Another issue worth considering is the fact that Airbus is not a publically traded company ( as far as I know), and Luftansa may risk less to deal with a company whi...