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Today the problems of EADS (parent company of Airbus) are an object-lesson in the dangers facing a company when government lacks a coherent industrial vision.
Since its conception the EADS management structure has respected the political arrangement for control of the group whereby French and German executives and traditionally the workforce at the aircraft manufacturer is geographically distributed in proportion to national ownership stakes. It is hard to make sense of this from the point of view of productive efficiency. It is an instance of economic nationalism, whereby governments distort private transactions among economic actors by discriminating against foreigners in the name of the national interest...
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