Boeing Challenges Airbus With $4.75 Billion Embraer Venture

Why did Embraer need the deal with Boeing more than Boeing needed it?

• Boeing needed to reduce manufacturing costs.

• Boeing wanted to enter the defense industry.

• Embraer was subscale in the smaller jet market.

• Embraer was looking to expand into the larger jet market.

What was the market's reaction to the Boeing-Embraer deal?

• The market expected a lower valuation.

• The market was highly optimistic about the deal.

• The market was indifferent to the deal.

• The market was disappointed with the deal.

How did the Airbus-Bombardier deal differ from the Boeing-Embraer deal?

• Airbus incurred significant costs in their deal.

• The share prices of both companies fell after the Airbus deal.

• The Airbus deal had no incurred costs and share prices rose.

• The Airbus deal was primarily focused on defense.

What is a potential future venture for Boeing and Embraer?

• Merging their defense and commercial sectors.

• Separating commercial and defense aspects.

• Focusing solely on the American market.

• Entering the large jet market together.

What political implication might arise from Boeing's plan to offshore manufacturing to Brazil?

• Potential reduction in American jobs.

• Increased support from the American government.

• Stronger defense ties with Brazil.

• Higher manufacturing costs.