Case Study Of Conducting Business In Cuba

Cash is not abundant in Cuba, especially for the poor to middle class families. An example of this would help move “product” from point a to b and in return, the employers can provide your family with food for a month.Government officials will often times take kickbacks for awarding large contracts to foreign companies . In return get money back from the investment in the company.

To begin, it is important to know about the history of Cuba to fully comprehend how things came to be as they are today. Since the Conquest and Colonization Era (1492-1898), many of the prominent European countries and the powerful neighbor to the north of Cuba, the United States of America, have attempted to take control of the land. It first began with the Spanish conquistadors, specifically Diego Velázquez, who was the first to explore and settle the land. Up until the end of the 19th century, the Spanish monarch was the authoritative figure overseeing the land and

The embargo is estimated to have cost Cuba $1.126 trillion in lost revenue over the last 50 years. The embargo obviously restricts Cuba from buying a lot in the United States, but not everything. Cuba is only allowed to purchase certain things from the United States if they pay in cash. The United States can't buy anything from Cuba though. Due to the restrictions of purchasing things from the United States, Cuba mostly has automobiles from the 1950’s or 1960’s.

The United States and Cuba have had a history of tension that goes back about 50 years. Within those years, an embargo was placed that kept Cuba isolated from participating in activities such as trade with the U.S. In 2008, a major step towards

Goods or services of Cuban origin may not be imported into the United States either directly or through third countries” (2001) . According to the Cuba Policy Foundation, the United States loses up to $4.84 billion annually in trade and exports alone (Pepper 2009) . The amount of money being disregarded because of now defunct reasons is radically lacking in logic. A simple repealing of the embargo would bring both the United States and Cuba great economic success.

“Raw sugar accounts for one quarter of Cuba’s export less than half a billion dollars” (The Economic Impact of Better US-Cuba Relations, 2015). Ending the embargo “Cuban exports can go from $0 to 5.8 billion” (US Cuba Embargo Pros and Cons: Renewed Relations Sets Caps and Limited Success for Businesses). Both economics can benefit massively from lifting the trade embargo this is because one of the most imperative exports of the Cuban economy is nickel. Nickel a mineral used in many industrial processes such as the creation of stainless steel, it can be a major use to the United States economy because it imports around 43% of nickel from the rest of the world therefore Cuba could benefit by entering the United States market. Cuba’s major import is refined petroleum which the United States is one of the largest producers of, the Cuban economy also imports wheat corn, meat, milk and soybeans which the United States also produces. Additionally, Cuba also exports rum and tobacco(cigars) which are said to be legendary in the United States. With the lifting of the embargo these products can be exported to the United States because Americans loves these clichés also, these exports can lead to a major enhancement in the Cuban economy because trade increases sales and profits, strengthen local competitiveness and diversification. Together the countries will be able to trade mutually and exchange

The United States is known for being one of the greatest and strongest countries in the world looking at past events and in this day and age. What might strike some people as shocking is that the U.S. would not be as strong without close ties with other countries or allies. Examples would be France, England, and Canada, plus many more. What people don’t talk about is the U.S.’s rivals or countries that the U.S. has had trouble with in the past leading up to now. One of the most renowned countries is only ninety miles away from the southern tip of Florida and that is Cuba. Cuba is known for the fantastic beaches, some of the most well-known baseball players around, and, of course, Cuban cigars and rum. But, the past with Cuba is not as bright as the U.S. wants it to be because of historical events such as the embargo, the Bay of Pigs, and the Cuban missile crisis during World War II that caused the two countries to separate as allies and close tied nations. Over the past year the U.S. and Cuba have been trying to put the past behind them and have diplomatic and cultural relations once again.

From their end, Cuba has surprised many around the world for striving against such barriers. “ The main driver of the Cuban economy is agriculture. The country is a major producer of several crops but sugar and tobacco are the big money products. Despite not being able to export their products to the United States Cuba has become a major exporter of agricultural products. There has been an attempt on the part of the Cuban government to diversify their economy and it looks like natural resources will be one way that they can do this. The country has become a major nickel producer and this has quickly become one of their largest exports. There is also the potential for Cuba to become a major oil producer. There are large reserves of oil in the Caribbean that are in Cuba's territorial water. It is very likely that in the near future they will take advantage of these reserves in order to help diversify the economy.”

…The answers are disarmingly simple. It remains illegal for Americans to travel to Cuba for non-emergency medical treatment, and the embargo prevents products developed in Cuba from entering the regulatory process of the U.S. Food and Drug Administration… (1507).

U.S. wanted Cuba to meet special requirements in order for the embargo to go into effect, including rules such as: transition to a democracy, demand Havana support small businesses in exchange for sheathing restrictions on remittances, denounce presence of either Fidel or Raul Castro in Cuban government, better living conditions for all Cuban citizens, absolutely no travel to Cuba, and promote human rights. Cuba has not yet met all requirements, but is currently working on them. Obama reversed some of these polices, such as, allowing U.S. citizens to send remittances to non-family members in Cuba and travel under license of religious or educational purposes. As of today United States citizens may travel to Cuba with only special reasons like religious or

Cuba and the Affects of the Embargo The island nation of Cuba, located just ninety miles off the coast of Florida, is home to 11 million people and has one of the few remaining communist regimes in the world. Cuba’s leader, Fidel Castro, came to power in 1959 and immediately instituted a communist program of sweeping economic and social changes. Castro allied his government with the Soviet Union and seized and nationalized billions of dollars of American property. U.S. relations with Cuba have been strained ever since. A trade embargo against Cuba that was imposed in 1960 is still in place today. Despite severe economic suffering and increasing isolation from the world community, Castro remains committed to communism. (Close Up

In the early 1900’s, Cuba was a stomping ground for many of the rich and famous from the United States. Many famous movies stars and wealthy business entrepreneurs spend their vacations there along with a substantial amount of money. Trade and commerce between the United States and Cuba flowed freely and abundantly. Even with the Dictatorship-like regime of Batista, the countries benefited from the economic trade between them. This was all about to come crashing down as revolts against Batista occurred and Fidel Castro came to power within Cuba.

Conducting business here and abroad including Cuba requires thorough research, planning, financial support, legal process, and any other obstacle or problem that will come with it. Cuba since opening its door to the United States can be one of the place to conduct business. With Cuba being banned for decades to conduct business with United States their agricultural products or their manpower were solely confined in their country. Bringing or introducing a new product from the United States to Cuba will be a big help to the people and to their economy. However, before conducting a business in Cuba, company or businesses

The Cuban people have been under the harsh dictatorship of both Felgenico Batista and Fidel Castro. They both had very strict policies and gave the Cuban people limited or no freedom at all. Batista and Castro were similar but yet different. One major difference that they had was that Batista was friendly with the United States and he had respect for American interest. On the other hand Fidel Castro hasn’t been as friendly with the United States, so the U.S has a trade embargo that restricts and American company to do business with Cuba and also U.S citizens are prohibited from traveling to Cuba unless for special circumstances.

The embargo has constrained the crossing of the borders for Cuban citizens, the exiles of Cuba and the businesses, its subsidiary to not be able to do their business in Cuba without facing penalties. This embargo has forbid the Cuban citizens’ contact to consumer goods that the United States presented. Cuba’s expansion of its infrastructure has also been limited therefore the country continues to be a poor country.