Doing Business In Cuba

The embargo will not eradicate Castro’s government, but it has economic effects that harms the people of Cuba. Historically the embargo has been an obstacle in the development of Cuba’s domestic economic activities. With the dissolution of the Soviet Union, Cuba lost their major means of economic support: An article published on the American Journal of Public Health confirms that in 1989 “The 60% Decline in Cuba's Gross domestic product is one of the steepest ever recorded” (Garfield and Santana 15). This drastic worsening of the economic conditions in Cuba was the catalyst for tightening the embargo: The Cuban Democracy Act was approved by Washington on 1992. This Act banned all trade of food and medications of USA companies with Cuba, and it prohibit ships from other countries to dock in American ports until six months after visiting the Island. The Act declares that severe monetary penalties will be implemented to those that violate the mentioned regulations. These economic sanctions are one of the causes why Cubans have had to deal with shortage, and high prices for food and other goods. Cuba could buy the majority of this products from the USA market, but instead has to pay higher transportation prices to get them from farther countries. An article published on the independent general medical journal The Lancet corroborates: “Tightening of the embargo lead to an abrupt cessation of supplies of food and medicine to Cuba

In 1959, Cubareceived 74 percent of its imports from the US, and the US received 65 percentof Cuba’s exports. On February 3, 1962, the United States imposed a fulltrade embargo on Cuba, completely ending any type of trade between the twocountries. This embargo remains in effect today, more than four decades later,and has grown ! to be a huge center of debate and controversy (DeVarona 8).Opponents to the embargo argue that the embargo does nothing more than hurt theCuban people, while proponents argue that the embargo places pressure on Castroto repair Cuba’s mismanaged and corrupt government. Both the supportersand the opponents of this embargo have strong arguments and evidence to supportthese

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.

In 1960 the United States, under President Eisenhower, established a partial embargo on the tiny island nation of Cuba (Rampersand, 402). That partial embargo became a complete embargo under President Kennedy in 1962. The United States established the embargo on Cuba to alter Cuba’s political clime. Looking back through the last 55 years, that goal has not been achieved. It is time to end the embargo on the island nation of Cuba re-establishing economic, scientific and cultural exchanges.

Supporters of the legislation believe that prohibiting foreign investment will quicken Castro’s downfall. (Close Up Foundation) Many debate on the issue of why the U.S. should or shouldn’t keep the ebargo against Cuba. These debates deal with the effects of the Embargo on Cuba’s economy, humanitarian rights and health of the people of Cuba. The embargo today places a ban on subsidiary trade, Licensing, shipping and humanitarian aid. (Close Up Foundation) In 1992, the Cuban Democracy act imposed a ban on subsidiary trade with Cuba. This ban restricted Cuba’s ability to import medicines and medical supplies from third country sources. There have also been corporate buy-outs and mergers between U.S. and European pharmaceutical companies thus adding to the number of companies permitted to do business with Cuba. Under the Cuban Democracy Act, The U.S. Treasury and Commerce Departments are allowed to license individual sales of medicines and medical supplies, supposedly for humanitarian reasons to make up for the embargo’s impact on health care delivery. According to the U.S. corporate executives, the licensing provisions are so tough as to have had the opposite effect. With this statement, it is assumed that there are fewer licenses given out for humanitarian reason therefore favoring the embargo and aiding in the downfall of health in Cuba. Since 1992, the embargo has prohibited ships from loading or unloading cargo in U.S. ports for 180 days after

In December 2014, President Obama started restoring diplomatic relations with Cuba. Cuba and the United States have been hostile since the Cuban Revolution of 1959, when Fidel Castro overthrew the US-supportedbacked dictator, Fulgencio Batista, and established a Communist regime. The US rejected Castro’s bid for equal economic partnership because they wanted to maintain economic dominance. As such, Castro began seizing US assets, causing back-and-forth actions that culminated in Presidents Eisenhower and Kennedy placing an embargo in 1960-61. The embargo was intensified in the 1990s, and attempts to relax sanctions cannot succeed without Congress repealing the laws responsible for the embargo. Despite arguments that it would help fight human rights violations, the US embargo on Cuba should be lifted because of its historic ineffectiveness, the potential economic advantages of a repeal, and the democratic values shown by the popularity of a repeal.

On February 1962, President John F. Kennedy signed an embargo on Cuba due to their Communist threat. Recently, the 50th anniversary of this same embargo, marked the continuing relationship upheld by The United States and Cuba. The United States created the embargo, in hopes that it would pressure the Cubans into adopting their Democratic policies. This embargo has not only failed, but has detracted from it’s goal of spreading democracy in Cuba. Additionally, it has hurt the American economy, costing the United States roughly $5 billion annually in lost exports. Many have recognized that it is through free trade not isolation, that democracy can be promoted within Cuba. The exposure cultural freedoms found in free trade would lead to economic

"We will end an outdated approach that... has failed to advance our interests, and instead we will begin to normalize relations between our two countries. Through these changes, we intend to create more opportunities for the American and Cuban people, and begin a new chapter among the nations of the Americas" (President Obama, Official Released Statement). On December 17th, 2014 the American embargo on Cuba, which set restrictions on relations with Cuba, was relaxed after over fifty years. The embargo on Cuba set restrictions on relations in areas such as travel and trade. The initial intention of the embargo was to persuade the Cuban government to attain a new form of government; as the United States disagrees with Cuba's communist position

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 United States and Cuba officially cut diplomatic ties in the 1960’s. After the relationship between the two nations deteriorated as a result of the Cold War, the United States enforced an embargo that restricted trade to the Caribbean island (Rothman, Why Did the U.S. and Cuba Sever Diplomatic Ties in the First Place?). Eventually, traveling to Cuba was also prohibited by the United States, which further affected the island’s economy in which American tourism decreased. However, after months of negotiations, the United States and Cuba have finally decided to restore their diplomatic relations. The reestablishing of the Cuban embassy and probable embargo lift will promote Cuba’s economic growth due

There have been some great strides made in regards to US and Cuban relations in recent years to include the restriction of US citizens being allowed to travel to Cuba being lifted. This restriction being lifted was part of a larger US strategy to help the country completely defeat socialism. Specifically, the US government presented the Obama administration with three economic reforms that would aid the country in achieving freedom for it’s citizens; “fostering the small-enterprise sector in Cuba, encouraging US investments, and boosting US tourism to the island” (Aze., 2015, p 19). Those who were responsible for these reforms believe that by eliminating sanctions the US would be helping to strengthen the Cuba self-employed sector and would

Before President Obama came to office, there was a more restricted import for travelers that traveled to Cuba. The United States of America and Cuba had restrictions on what people could bring into and take out of the country. For instance, the people had limited number of personal items people can take to the country. It went all the way to where people were only allowed to bring a certain amount of personal things they could take. Travelers had to pay money if they wanted something shipped with them that is electronic. Computers, game stations, and televisions are items you had to pay a lot of money if you wanted them to be shipped. The amount of things that the travelers could bring with them were limited. The people that were to travel

There are a number of players involved. The first is Starbucks, both the head office in the US and the head office in Canada. The Spanish partner is also an important player. The US government and Cuban government are both relevant players in the external environment given the legal issues that may arise from Helms-Burton and other laws prohibited American companies from doing business in Cuba 她r not (Jackson, 1997).

Trade helps in business growth and it helps the economy of the country as the different business enterprises can learn from other businesses’ ideas and would help in the growth of the enterprises with its global competitiveness. The embargo may have been effective in the times of Cold war but in the modern times it is perceived as useless especially for the Cuban-American families and business enterprises that are looking for opportunities in Cuba.