US n Cuba trade

U.S. – Cuban TradeU.S. – Cuban Trade

Governmental Influence on Trade

A Case Study of International Business Management

By:-Jitin AgarwalKriti AgarwalMohit ShuklaPriyanka DhanukaTrimester VIGHS - IMR

Main Cuban Exports & ImportsMain Cuban Exports & ImportsMain Cuban Exports & ImportsMain Cuban Exports & Imports

EXPORTS IMPORTS

NICKEL OIL & LUBRICANTS

TOBACCO FOOD

SUGAR & By-Prod. MACHINERY /EQUIP.

FISHERIES METALS & MANUF.

CEMENT CHEMICALS

RUM VEH. /TRANSPORT.

COFFEE PHARM. & MED.DEV

OTHERS OTHERS

US strong with…US strong with…

Airplanes

Tractors

Agriculture

Office supplies

Food

Computers

Cuban EmbargoCuban Embargo

US can not trade with CubaCan not travel to CubaPlaces sanctions on those countries that

do trade with CubaFor the purpose of showing disapproval

for their government (communist nation)

Should the U.S. Seek to Should the U.S. Seek to tighten the economic tighten the economic grip on Cuba ? grip on Cuba ? if so , why ?if so , why ?

Question 1

Yes,as US has always tried to dominated over other Yes,as US has always tried to dominated over other countries. So, US should make an effort to tighten its countries. So, US should make an effort to tighten its economic grip.economic grip.

Embargo must be lifted & better trade relations must Embargo must be lifted & better trade relations must be established so that US can finally restrict Cuba’s be established so that US can finally restrict Cuba’s influence over latin countries (making Cuba more influence over latin countries (making Cuba more dependent on US for their economic growth)dependent on US for their economic growth)

If every one is trading why not U.S. If every one is trading why not U.S. Not much impact on Cuba as it is trading Not much impact on Cuba as it is trading

with other countries.with other countries.Political tension between these countriesPolitical tension between these countriesU.S concern- human rightsU.S concern- human rightsSpecifically, only US, Israel and

Uzbekistan are rejecting the voice of the United Nations General Assembly to seize this type of trade treatment.

US embargo affect Cuba’s Food, medicine other important suppliescommunist upheaval that led Fidel Castro in

power

Should the U.S. Should the U.S. Normalize business Normalize business relations with Cuba ? relations with Cuba ? if so , should the U.S. if so , should the U.S. Stipulate anyStipulate anyconditions?conditions?

Question 2

Yes,US should normalize relation Yes,US should normalize relation Relation can not be same as they were in the Relation can not be same as they were in the

past.past.

Normalized trade willallow tourism between our two countriesAgricultural exports will increase.establish a free market-based economy, and move to

democracy.Expedite economic growth in both the nations.finally US can influence them to trade with them as

Mexico does. This might influence Cuba to switch to democracy in long run

Assume you are Fidel Assume you are Fidel Castro. What kind of Castro. What kind of trade relationship with trade relationship with the U.S. Would be in the U.S. Would be in your best interest ?What your best interest ?What type would you be type would you be willing to accept?willing to accept?

Question 3

Because of embargo economy did not grow as it should

Poverty and unemployment and human right were not there

Because of collapse of soviet union cuba looses the aid

So as to gain aid to run its economy it should take care of human right and try to make good relation with U.S

If Castro allows this then further growth is possible because after, when in 2000 the export to U.S was opened then Cuba became 25th largest agricultural market for U.S with sales exceeding $400 million in U.S.

How does the structure How does the structure and relationships of the and relationships of the American political American political system influence the system influence the existence and existence and specification of the specification of the trade embargo? trade embargo?

Question 4

Cuba- Communist govtCuba- Communist govt Did not support Human rightsDid not support Human rights Agricultural economy(protect the economy)Agricultural economy(protect the economy)

US- Democratic govtUS- Democratic govt Supports Human rightSupports Human right Industrial economy(interested in exports)Industrial economy(interested in exports)

US was against the increasing influence(spread US was against the increasing influence(spread of communism) of Cuba (Fidel Castro govt) over of communism) of Cuba (Fidel Castro govt) over latin American countries.latin American countries.

Resulted in ColdwarResulted in Coldwar

Thank you…Thank you…