The aerospace, construction, and firearms industries are prime examples of industries for which governments are major customers
Question:
The aerospace, construction, and firearms industries are prime examples of industries
for which governments are major customers and whose revenues and profits are
significantly—in some cases, predominantly—affected by their sales to governments.
An example is the European Aeronautic Defence and Space Company (EADS), a global leader in aerospace, defense, and related services with head offices in Paris and Ottobrunn,
Germany. In 2008, EADS generated revenues of €43.3 billion and employed an
international workforce of about 118,000. EADS includes Airbus, a leading manufacturer
of commercial aircraft; Airbus Military, providing tanker, transport, and mission
aircraft; Eurocopter, the world’s largest helicopter supplier; and EADS Astrium, the European
leader in space programs, including Ariane and Galileo. Its Defence & Security
Division is a provider of comprehensive systems solutions and makes EADS the major
partner in the Eurofighter consortium and a stakeholder in missile systems provider
MBDA. On 3 March 2008, EADS shares rose 9.2 percent after the US Air Force chose
its Airbus A330 over Boeing’s 767 for an airborne-refueling plane contract worth as
much as US$35 billion.
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