Case Study: US – Cuban Trade Closing Case

1. Should the United States seek to tighten its economic grip on Cuba? If so, why?

I do not think that it is a good idea for America to tighten its economic grip on Cuba. There has recently been a shift in the US state policy towards Cuba and the relations have improved dramatically. Cuba is not a hostile country with a medium economy. America should encourage its investors to visit the Cuban markets and find opportunities for themselves in there. The Cuban society has a good standing on the quality and quantity education for its citizens. They also have a good health provision system for their citizens. The national health system has a lot to offer to learn from for other countries (De Vos, 2005). America can learn from their experience and adopt to some of the health and educational structures that Cuba has applied.

2. Should the United States normalize business relations with Cuba? If so, what conditions might/should the U.S. stipulate?

I do think so that USA should normalize its business relations with Cuba. I mean that we live in a global world and a country cannot insist forever on keeping no business ties with its neighboring countries. America can though stipulate some conditions that they could request Cuba to honor. For example America can ask for quota for their products in the Cuban Market. They can request legal protections for the US investors in Cuba. They can also request political sureties related to business and investment.

3. Assume you are Cuba’s leader. What kind of trade relationship with the United States would be in your best interest? What type would you be willing to accept?

Being a Cuban leader it would require me to seek the assessment of the country’s trade, economic and financial experts to know what would be in the interest of the Cuban trade and economy. In my opinion I would look for trade relations that ensure that the investors coming in from America to Cuba do not engage in political activities. They do not exploit their Cuban employees. I would seek to learn from the business practices of US and request them to train the Cuban workforce in accordance with the international market standards.

4. How do the structure and relationships of the U.S. political system influence the existence and specification of the trade embargo?

The US political system has always been a source of trade embargo toward Cuba. One of the reason is that Cuba is run under an authoritarian regime while US is world’s oldest democracy. This is a great difference that has proven to be a hindrance in economic ties between the two countries. The recent cause of the trade embargo is because Cuba is a communist state while America is a capitalist country. These two ideologies have always been considered as hostile towards each other.

5. Much of U.S. tourism, especially via cruise ships, goes to the Caribbean. Do you think the end of U.S. travel restrictions to Cuba will add or displace tourism to other Caribbean countries?

I do not think that the opening of tourism ties with Cuba would adversely impact the tourist influx to other Caribbean countries. The reason is that USA has a huge economy and a huge population that can afford to engage in tourism activities around the world. The opening of the tourism relations with Cuba might increase the number of American tourists as they see a new venue to visit.

6. List and explain the advantages that might accrue to the United States if the embargo with Cuba were lifted.

There are many advantage of lifting the embargo with Cuba. Following are three main advantages (Gustin, 2015):

1. Cuba is in historically the path of hurricane that come toward the US. US can work with Cuba to develop early warning systems to address the issues of these hurricanes.
2. Cuba has a great national health care system that is an example for the rest of the world. USA can learn from their best practices.

• US investors can invest in Cuba that could result in great form of revenue for the US in the form of taxes these investors pay and the profits that bring in to the US economy.