Case: US – Cuban Trade Closing Case

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

Before USA plans to put any kind of economic pressure on Cuba, I think it would be wise to assess its implications for USA. USA is not that far from Cuba via sea. In case USA puts undue pressure on Cuba, there is a chance that an issue of immigration may arise as Cubans would try to move to USA to find a good life there. The other issue that may arise is the fact that Cuba may not respond to this tightening well. It could have political reparations for the US as Cuba might try to involve its historical allies like Russia into this situation.

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

This would be in the interest of USA to normalize its relations with Cuba in my opinion. It has been a long time since USA and Cuba have had bad relations and I see no benefits of it. Also USA might benefit from the market of Cuba as its business people could go and look for investment opportunities in Cuba. Research has indicated that good relations with neighboring countries could have financial and economic advantages (Dimitrov, Petrakos, 2003).

USA might want to put a balance in its exports and imports with Cuba as it would not be in the best interest of USA to have an export import deficit. USA could also make sure that its business people who want to investment are free of political pressure of any kind inside 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?

As a Cuban leader, I would expect US to honor any deals that the two countries make. I would want them to facilitate Cuban investors inside US, the same way Cuba is willing to facilitate their investors. I would also want US to restrain from any political interference in the internal politics of Cuba.

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

The existence of the trade embargo towards Cuba is due to difference in political structures in the two countries, i.e. Cuba and USA. One country is democratically run while other has a family running it. Economic ideologies are also different in both the countries. Cuban economy is socialist while USA is capitalist. Political and business elites in both countries have their own interest that may be in conflict with each other.

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 countries?

I don’t think that it would have any negative implications. In my opinion, the impacts may even be encouraging for the travel industry as they may be able to introduce more packages and get extra destinations for their customers.

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

Some of the advantages are:

USA can have one less country that it is conflict with, especially in its northern American region.

USA may be able to expand its international businesses to Cuba and benefit financially.

US citizens could go to Cuba for leisure to Cuba. They can also go there and take advantage of the cheap health system in Cuba.