Chapter 6: US – Cuban Trade Closing Case

Chapter 6: US – Cuban Trade Closing Case

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

In my opinion US should not tighten its economic grip on Cuba. There are several arguments in the favor of this thesis. Cuba is a country that is already struggling with economic issues. It is a country that is just miles away from US border in the sea. If there is an economic milt down in Cuba, people would try to migrate to US that would definitely create immigrant issues for US.

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

Definitely US should normalize its relations with CUBA. US should leave the history of the cold war behind them and look towards a brighter future in collaboration with the Cuban government and people. Cross border cooperation has always proved to be in the benefit of both the countries on either side of the border (Dimitrov, Petrakos, Totev & Tsiapa, 2003). US should look to cut an economic deal with the Cuban with a stipulation that there would be no political interference in the economic activities by the US investor in Cuba.

1. 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?

If I am a Cuban leader, I would first expect US to accept the political government of the country. Then I would look for a business and economic relation that is based on equality and trust rather than US superiority. I would also like US to facilitate the Cuban business to carry out business activities in the US.

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

US is a politically and economically strong country. Due to the cold war and the relations of Russia and Cuba that brought Cuba to the communist camp, US did not have relations with Cuba until recently. The reason behind the trade embargo towards Cuba was the cause of the political embargo of the historical mismanaged relations between US and Cuba.

1. 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?

Yes, I do think that the end of US travel restrictions to Cuba will displace tourism from other Caribbean countries to Cuba. In fact there are already indications that the tourism industry in Cuba has improved while that in the other Caribbean countries has deteriorated (Calder, 2014). Cuba is a beautiful place to visit with a population that is highly educated and welcoming.

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

There are multiple dimensions of the advantages for the US. First is a new market for the US investors to invest in and earn profits that would add to the US GNI. Second is a great tourist spot for American to spend their vacations. And third is the availability of skilled and educated labor for US economy from the Cuban society.