Bombardier was in competition with Embraer SA of Brazil and both transnationals provided bids supported by governmental loans. This is the way to do business today in the one world wide global market, that is transnationals collude with governments to secure big business deals and in so doing these transnationals externalize their costs at the expense of governments. This is a far cry from the time when President Franklin Roosevelt applied the Keynesian economic theory of governmental deficit spending to untap the unused economic resources of the United States and provide full employment.

There is really no general theory of economics beyond our understanding that business must be conducted democratically on behalf of the people at large and not selectively on behalf of transnational corporations. And today, Globalization is distorting our democracies as governments get bigger to assist their transnational corporations while internally both governments and transnationals downsize their people for the sake of global economic efficiency. And to understand the intrinsic double talking of our political and business leaders I quote Canada's International Trade minister Pierre Pettigrew "this is a loan, Bombardier will not get a cheque, will not get a thing."

Reference

Bombardier beats Embraer for $2.6-billion deal with Northwest Airlines, CBC Canada July 9, 2001 http://cbc.ca/cgi-bin/templates/view.cgi?/news/2001/07/09/bombardier_010709