INTERNAL LOGICAL
For a long time, Cuba faces the facts that the basic industries in Cuba lags, that 80% of food relies on imports, and that implements long-term rationing, the pillar industries and important economic sources of finance in Cuba are tourism and the exports of sugar and nickel. With the advancement of economic reforms, while maintaining macroeconomic stability, Cuba tried to expand domestic growth sources within its capacity. For instance, as of 2013, the total number of tourists reached 2.83 million, which arrived at a peak. In terms of adjusting industrial structure, Castro launched energy revolution aiming at energy efficiency and renewable generation. However, to help deeper economic reforms and development, active
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Based on report by the Cuba National Office of Statistics, the GDP annual growth rate increased to 4.7% in the first quarter this year.
From 2006 to 2014, the unemployment rate of Cuba remains relatively low with a range from 1.6% to 3.5%. As of 2014, the unemployment rate was 2.7%. Besides, from 2006 to 2014, the average inflation rate of Cuba was 3.98%, while in 2014 the inflation rate was recorded as 5.30%.
Cuba’s GDP heavily relies on export. As of 2011, exports of goods and services added 25.1% to its GDP. Cuba exports goods such as sugar, medical products, nickel, tobacco and coffee, while imports petroleum, food, machinery and chemicals. However, in 2014 Cuba faced a trade deficit of 7976.60 million CUC. It’s also worth mentioning that tourism became a new strong segment in Cuba. According to a report by World Travel and Tourism Council, the direct contribution of travel and tourism to GDP in 2013 was 2.5, while the total contribution was 9.8% with estimated rise by 4.7% per year.
Monetary policy. Currently Cuba operates a dual currency system. The two official currencies include the Cuban peso (MN or CUP) and the Cuban convertible peso (CUC). The convertible peso was originally designed to replace the U.S. dollar at a 1:1 rate. The Cuban peso was created in 1915, at which time the U.S. dollar was also legal tender
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.
It also says that shops will have a large range of products, however there are still large shortages of food. Rations are sometimes not even guaranteed to be delivered and if they are they will be very late. In 1991 the grain supply to Cuba from the Soviet Union since it collapsed which also caused the cattle to not be able to be fed. Since they could not feed the cattle all of the products and bi-products were very rare like the milk, beef, and eggs and chicken. Since a lot of the fuel was in a shortage the crops had to be harvested by people which made the production of food slow to crawl. They have improved the production but the shortage is still very common and no they are starting to resort to non-rationed stores and even the black market. The actual food/cuisines of Cuba come from many cultures like the Spanish, Africans and Caribbean, One very small part but slight influence is from the Chinese also. Some of the most popular foods include varieties of meat and rice with black beans. The traditional type of Cuban food can also be called criollo. Some of the most common spices and seasonings used are things like garlic and onion and common ingredients are things like lettuce, pork, eggs and tomatoes and more. One product of Cuba is also Coffee which is normally sold to other places and the coffee that Cubans normally drink are from places like
Cuba has a lot of different climates and most of the time in Cuba it doesn't get below 70 degrees Cuba’s average temperature is about 70 degrees in the winter and about 80 degrees in the summer (Miric).Cuba has a dry and rainy season. The dry season lasts from November to April, and the rainy season runs from May to October
Cuba and the United States of America have completely opposite economies. Cuba’s economy is based on the few natural resources that the country owns while the economic system in The United States is capitalist and can be recognized for its noticeable development in agriculture, energy, and other resources that keep the country expanding and provides jobs as well as a good quality of life for its residents. On the other hand, Cuba’s economy, is predominantly poor, to the point where a very huge percent of its population suffers from
The Cuban government avoids taking action on big issues due to bribes from people who don't want to see any change in Cuba. The people who are bribing these officials are most likely conducting illegal activities . Refworld.org has Cuba ranked from a scale from 0-10 (0 being the worst) 4.5 amoung 186 other countries.
Cuba has been the source of controversy for decades. Between events such as the Bay of Pigs invasion and the Cuban Missile Crisis in the 1960s and the country’s ongoing Communist dictatorship, this island nation has not always been thought of as an appealing place to visit. However, Cuba’s physical and human geography, especially when coupled with the lifting of the US embargo, give it the potential to be a prime tourism destination.
“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
It may seem that they don't make much money. Their prices in Cuba for things are far less than what we have here in the U.S. Like a bottle of coke is a dollar and twenty-two cents in Cuba and in the United States it is a dollar and seventy-five cents. Womens life expectancy in Cuba is 80 years old. Men's life expectancy in Cuba is 70 years old. Kids are required to go to school at least till high school. Uniforms are required at every school and they were different colors for each grade. The literacy rate in Cuba was 99% .Education is free to anyone all the way through the university level. They want everyone to have a chance to learn because most of them would not be able to afford to go to school or college.
Cuba is located in Central America and the Caribbean. The type of government Cuba has is a communist government, so the government plans and controls the economy. The top three exports for Cuba are NESOI items, pharmaceuticals, and tobacco. The top three imports are machinery, fuel, and tobacco. Cuba's GDP goes up about 3% annually and overall, Cuba's government is steadily increasing each year. The population in Cuba is 11,027,000. Cuba’s health per capita is roughly $1,828. Cuba is a multi-ethnic nation, home to people of different ethnic and national backgrounds. The majority of Cubans descend from spaniards.
Furthermore, U.S Credit and Debit cards do not currently work in Cuba. However, MasterCard and Visa are widely accepted at hotels, car-rental agencies, restaurants, and shops, with the condition that they cannot be issued by a United States bank or financial institution. It is always best to check with your home bank before traveling to see if your card will work in Cuba. Or remember to bring enough cash with you to last you your whole trip. U.S. Dollars can be exchanged into Cuban convertible currency at the airport, hotels, or exchange houses. There is usually a 10% charge on exchanging U.S.
Castro’s long rule meant that he had plenty of time and opportunity to bring prosperity to his country — to get development right, so to speak. But instead, he left Cuba worse than when he first took over, at least relatively speaking. Before his rule, Cuba was one of the richest countries in the Americas. But by the 1980s, it was already among the poorest. Whereas the region’s per capita GDP essentially doubled between 1958 and the late 2000s, in Cuba it grew by a paltry 5 percent over that period.
Citizens cannot invest in the country, but for the businesses who can, the investments go a long way due to Cuba’s government policies towards free education and healthcare (Kolarich, 2016). There are ways around the embargo to be able to invest in Cuba, like investing through a third party, but it is extremely risky and there is not much protection offered for investors Businesses from all countries must partner with the Cuban government before hiring employees, and a government employment agency decides what wage the employee is hired at. (Hoag). Cuba’s infrastructure is really outdated and has much room for improvement. Cuba’s banking, buildings, communications, and currency are far below western standards and some experts say that Cuba is not ready for global commerce. According to my research, more businesses have left Cuba than have stayed, and the reason is unclear, but some believe that it is frustration with the infrastructure. When thinking about conducting business in Cuba, the entrepreneur must realize that Cuba’s legal system is different from many other countries’. All of Cuba’s trials and legal proceedings are conducted in secret, and with no transparency (the U.S has press conferences), so it can be challenging for an entrepreneur to know what they may be stepping into with Cuba (Hoag,
Cuba had partaken in globalization through its interactions with the USSR and the US. Cuba was a developing country and needed support to eventually be able to rely on itself. After the collapse of the USSR, Cuba was one of the only socialist
The population of Cuba is 11,141,997 people. The Cuban culture has been rich with festivals and many religious and historical honors over the past century. The Cuban peso is the basis for currency in Cuba.
Secondly, Cubaneeds to repair its corrupt, failing state-run economy. The reality of thisstruggling economy is that Cuba’s resources are plenty, and its