Answers to Case Study on Cuba and U.S. Trade

Answersto Case Study on Cuba and U.S. Trade



U.S.should not tighten its economic grip on Cuba. Cuba has a weakeconomy as compared to the United States (Daniels et al., 2015). Cubahas been in constant conflict for last few decades. Tightening theeconomic grip on Cuba will adversely affect the economy of U.S.rather than achieving its foreign policy goals, which have provedunfeasible for the last four decades. For the companies andindustries of U.S., Cuba is a potential market. In addition, there iseffective workforce in Cuba and thus will offer the U.S. industriesabundant labor at a reduced cost. Other nations of the worldappeared to favor Cuba and mistrusted the U.S. rationale on imposingthe embargo. U.S. can choose to slow down the dollars flow to Cubato weaken Cuban President’s position and accelerate his downfallhowever, this will adversely affect the economy of America,especially in Money and charter companies—transfer servicescurrently operating in Cuba.


Yes,America should normalize business relation with Cuba. To normalizebusiness relations, the two nations need to take into account someissues. Firstly, there are both economic and political reasons fornormalizing trade relationship with Cuba. For a long time, Cuba hasstopped to be a military threat, and there is a high possibility thatcloser political relationship with America and the rest of democraticnations in the world will result in improved democracy in Cuba.Besides, the trade sanctions imposed on Cuba is tougher compared tothose levied by America against Libya, North Korea, Iraq, and Libya.Economically it is argued that normalizing the trade relationshipwould offer opportunities to U.S. industries and companies to selltheir services and products in Cuba thus improving the economy of thetwo countries. Cuba has attracted massive investments from manybusinesses from other industries mainly drawn by its highly skilled,trained and qualified workforce (Daniels et al., 2015). Due to highskilled, near-perfect literacy rates in Cuba, it has become apotential place for foreign investors. In addition, Cuba has highmarket potential for foreign services and goods. The most importantstipulations should be that any political upheaval should not in oneway or the other affect the terms and conditions of trade set. Cubashould also return all the U.S. companies back.


IfI were the Cuban President, I would make the necessary steps toreconcile with America and break the trade barriers imposed. I wouldensure that the relationship between Cuba and U.S. is a good onebuild on mutual trust and understanding. Cuba is largely dependenton America because it is the world superpower with a very strongeconomy. In 2006, for example, the United States was the mainexporter of agricultural products to Cuba (Daniels et al., 2015).This shows that trade relations between Cuba and U.S. are quiteimportant. Besides, the U.S’s power and dominance over othernations of the world is important for Cuba. For improved employment,sustained growth, and prosperity of people of Cuba, the traderelation between Cuba and U.S. must be harmonized. As the presidentof Cuba, I will also improve dramatically exports of the Cuban mainproducts (Cigars, Rum, and Sugar Cane) (Gitlin, 2011). Besides, Iwill develop the tourism sectors to attract more U.S. citizens tovisit the country.

Question6.6 the world superpower regarding the economy, technology, andmilitary might. Its political and trade relations with other nationsis mainly dominated as well as favored due to its heavy-duty positionin the economy of the world. Because of its influence and power, U.S.implied trade sanction on Cuba and influenced other countries, mainlyits allies to follow the suit. The reason why the embargo was imposedwas to weaken Cuban economy because of long-term conflict it hardwith America. Pro-embargo supporters inexorably lobbied thePresidential administration and U.S. Congress to tighten the embargoto spur the weakening and collapsing of Cuban communism (Gitlin,2011).


Yes,it will reduce the numbers of U.S. tourism visiting Caribbeancountries. It is because most of the major tourist attractions inCaribbean countries are quite similar to those in Cuba. In addition,Cuba is closer to America than these nations therefore, mosttourists would prefer to travel to Cuba to save on traveling costsand time. However, some Americans might remain skeptical to visitCuba due to its communist enemy past


  • Trade (A new market for American products and industries): Cuba is the most economically viable and largest market in the Caribbean as well as the closest to the United States. Its over eleven million inhabitants and expanding tourist industry makes it one of the most lucrative country to invest in. Therefore, U.S. will benefit a lot (Sanguinetty, 2013). Cuban wealth of underutilized human and natural resources makes the country an ideal economic trading partner for the U.S. America will eventually control the natural resources of Cuba and the import of labor personnel from this country just like Mexico (Sanguinetty, 2013)

  • Health Care: Cuba is among the few nations of the world with the most advanced medical biotechnology industries. With over 12,000 workers, including 7000 engineers and scientists, it receives enormous government investments and inexhaustibly produces new medications and treatment (McSweegan, 2015). Cuban biotechnology business holds approximately 1,200 international/global patents as well as market vaccines and pharmaceutical products in over 50 countries—but not in U.S. For over, 26 million individuals in America who have diabetes, this will have special significance (McSweegan, 2015). Every year, about 80,000 people with diabetes in America suffer amputations. Cuba developed an effective and safe medication, Heberprot P, which minimizes the amputation risk by over 79% (McSweegan, 2015). It is being used by Cuban patients and over 20 nations. U.S. will benefit from this opportunity owing to the fact that Cuba is just 90 miles away from U.S.

  • Arts and Culture: Art and Culture help bring people together in unique ways that ideology and politics cannot. Cuba and America have been changing the culture for many centuries now, even with the existence of embargo, artists from both nations have found ways to sidestep the U.S. sanctions (Betancourt, 2015). From cinema to architecture, folklore to fine arts, and jazz to ballet, Cuban and U.S. artists have collaborated despite the imposed trade sanctions and travel restrictions. Normalizing the situation will facilitate the expansion of these collaborations thus creating more employment opportunities and the market for U.S. artists.


Betancourt,R. (2015). 5 October 2016, from

Daniels,J. D., Sullivan, D. P., &amp Radebaugh, L. H. (2015). Internationalbusiness: Environments and operations.Boston: Pearson

Gitlin,M. (2011). U.S.sanctions on Cuba.Edina, Minn: ABDO Pub.

McSweegan,E. (2015). Waitingin the Wings: Cuban Biotech and Medicine | 5 October 2016, from

Sanguinetty,J. (2013). Whobenefits and loses if the US-Cuba embargo is lifted? by Jorge A.Sanguinetty.Democracy,Development and Institutions.Retrieved 5 October 2016, from