Bombardier

Bombardier case study

Corporate Alliances with Government

One chief observation that stood out to me was how both Bombardier and Embraer leveraged their alliances and support of their respective Canadian and Brazilian with respect to escalating the issue of unfair trading through subsidies. It appears to me that firms really do not have membership per se with the WTO Ð'- only countries and their governments do. Therefore it is important for corporate managers to understand that their alliances with government are essential to their success in resolving matters involving unfair international trade and/or legal disputes.

Politics of the Dispute

Assembling a top-notched team of lawyers and international trade consultants becomes really key, particularly those who are experienced in international disputes and who know who the WTO players are, and how the WTO works internally. It is important for corporate managers to know that the WTO and the government leaders they will be dealing with have their own political agendas and their own political constituents to worry about. The analysis of the issue should be big-picture enough to recognize the impact on not only a nation as a whole in terms of national interest but also on the international scene. Sanctions, subsidies and other retaliatory tactics consume political capital, which government leaders do not have an infinite amount of.

Opportunity Cost of Disputes

International disputes such as the kind Bombardier and Embraer experienced take time. Corporate manages should weigh the costs of focusing their company's energies, thinking and capital towards international disputes against their core business and operational goals. Raising an issue to the WTO also carries an opportunity cost in terms of heightened rivalry which can bring about unintended or unforeseen consequences which a firm must be prepared