According to the Export-Import Bank of the United States website, the Export-Import Bank of the United States is the official
export credit agency of the United States. Their mission is to assist in financing
the export of U.S. goods and services to international markets. This bank plays a key role in the United
States companies, in order to turn export opportunities into real sales. This in turn will create jobs and help build
a stronger economy. The Export-Import
Bank does not compete with private sector lenders but provides export financing
products that fill gaps in trade financing. They assume credit and country
risks that the private sector is unable or unwilling to accept. The Export-Import
Bank, also help to level the playing field for U.S. exporters by matching the
financing that other governments provide to their exporters.
The
Export-Import Bank plays a key role in the aviation industry, as aircraft
manufacturing is one of our nation’s biggest exports, it is not surprising
that U.S. jobs depend on our government helping to maintain a level
playing field. Since these aircraft manufacturers
rely on the Export-Import Bank for international trade, if it were to disappear
it would hurt these businesses. They would
most likely lose business and find it difficult to get financial support, as
not all banks support international trade.
Aircraft manufacturing companies looking for international business financing
go specifically to the Export-Import Bank.
This bank has dealt a lot with exports and business in other countries.
I don't have any problems with the Export-Import
Bank.
They are an important aspect of international trade especially for
aircraft manufacturers. I
was unable to find evidence that stated the Export-Import Bank is hurting the United
States economy. It seems that overall the Export-Import Bank of the
United States promotes the export of our
goods. Their website mentioned that, With 80 years of experience,
Ex-Im Bank has supported more than $600 billion of U.S. exports, primarily to
developing markets worldwide.
I completely agree with you. Without the Ex-Im Bank many companies would lose financing since most banks won't assume the credit and country risks that the private sector is unable or unwilling to accept. I've seen some opponents comments stating they think it gives foreign carriers an edge over domestic, but I disagree. US companies have an easier time getting financing, and the overall impact is positive with the planes coming from US manufacturing.
ReplyDeleteI believe the issue that the issue that arises with the export import bank and the aviation industry is the fact that the foreign companies (our competitors) are given a break when buying the same aircraft that our airlines pay full price for. It gives the foreign companies an advantage and an ability to be more profitable.
ReplyDeleteIt took me some investigation to find that information. I think it's a government conspiracy.
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ReplyDeleteI agree with you that the Ex-Im provides a benefit to the national economy. However, there is still substantial abuse when it comes to which companies are awarded financing. This is slowing being resolved, but companies like Emirates should not be eligible. The argument can be made that if companies are not eligible they will shift to a different producer, however their aircraft needs are too large for any one manufacturer so Boeing would not lose sales.
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