The need to invest huge financial resources in manufacturing facilities in order to produce large commercial airplanes creates a significant barrier to entry to any competitor for Boeing and Airbus.

Question

Quizplus · Accepted Answer

It is true that the high capital requirements in building manufacturing facilities for large commercial airplanes makes it difficult for new entrants to compete with established players like Boeing and Airbus. This is one of the reasons why there are very few major players in the commercial airplane market.

The Need to Invest Huge Financial Resources in Manufacturing Facilities