Comment on what the U.S. embargo on Cuba meant to the country itself and what it meant to U.S. companies. What does the recent announcement by President Obama that restrictions would be eased imply for the country? The USA embargo on Cuba meant the economic isolation of Cuba and the restriction of USA to collaborate with Cuba. This embargo affected Cuba economically and socially. Economically, the exportation from Cuba to the USA was prohibited and importation from the USA to Cuba were restructured by the USA. In addition, USA companies were forbidden to operate in Cuba and stranger companies which operated in Cuba were not admitted to operate in the USA. For instance, in 2007, Hola Airlines, a Spanish company was prohibited to get maintenance …show more content…
USA companies will be allowed to compete in Cuba market. In addition, international companies will be free to operate in Cuba without being excluded in the USA market. Finally, Cubin population will enjoy the benefit of international trade and Cuban immigrants in the USA will be allowed to visit and assist financially their family’s members and to improve their social life.
In the short-term, which U.S. industries stand to benefit most from a lifting of the embargo on Cuba? Why? What challenges do companies in these industries face in developing a presence in Cuba?
The US communication industries stand to benefit most from a lifting of the embargo in the short term. For instance, just by relaxing the embargo, Verizon and other telecommunication companies conclude accords with the Cuban telecommunications company (Etecsa), which has the monopoly. These accords concern the direct interconnection and roaming services. Consequently, the cost of making a phone call from Cuba to USA will be reduced. The big challenge for these companies is the Etecsa’s monopoly in telecommunication. Since there is one seller (Etecsa) and many customers (USA telecommunication companies), there will not be enough flexibility in the price negotiation in this market. Consequently, Etecsa will be the price maker and American’s companies will be the price
economic growth comes from agriculture and exports to and from Europe. Since America has had an embargo on Cuba since 1962 neither countries trade with each other because of many disagreements about governing techniques and Fidel's unwillingness to comply with U.S. instructions. Cuba’s long history and culture has contributed to many economic and social growth through out the world, but Cuba is still struggling to try to stable their economy.
The naval blockade of Cuba was retaliation from John F Kennedy finding out about the Soviet Union creating secret nuclear missiles on Cuba. The time is October 22, 1962; the State of Union is not at peace. The United States and Soviet Union are in what is known as The Cold War, which lasted from 1945-91. The war leads to international crisis with alliances, naval battles and the Soviet Union, our biggest threat.
Cuba and the U.S.: The Tangled Relationship. New York: The Foreign Policy Association, 1971. Flaherty, Tom.
The U.S.’s relationship with Cuba has been arduous and stained with mutual suspicion and obstinateness, and the repeated U.S. interventions. The Platt agreement and Castro’s rise to power, served to introduce the years of difficulty to come, while, the embargo the U.S. placed on Cuba, enforced the harsh feelings. The two major events that caused the most problems were the Bays of Pigs and Cuban Missile Crisis.
Is the Cuban Embargo a cruel reminder of the Cold war, or is it an important factor of American Democracy fighting the spread of Communism? The Cuban Embargo was a declaration issued by American President John Fitzgerald Kennedy. The embargo was issued because of the threat that the Communist government of Cuba, led by Fidel Castro in 1959, had on American security, assets and democracy at the height of the Cold War. Some 1.8 billion worth of industrial assets were lost with Cuban communist nationalization. (Mr. D’Angelo personal interview) In support, constant influence of the Soviet Union during the early 1960s, particularly the time between 1961 and 1962, led to the creation of the embargo. In addition, the Soviet Union had planned to build a missile base on the island, which drove the Cold War to its height and made nuclear destruction a real possibility. Consequently, The Embargo called for total economic sanctions for Cuba and the institution of a blockade around the island, as shown by the seven-day stand off that followed the embargo with the USSR. Unfortunately, this blockade completely restricted any trade to foreign countries and even restricted travel to and from the island. The shattering of The USSR, or Soviet Union, should have called for the end of the embargo, but instead the federal government, in 1992, further restricted the embargo with the 1992 Cuba Democracy Act and the 1996 Helms-Burton Act. The Cuban Democracy Act was a bill presented by U.S. Congressman Robert Torricelli and passed in 1992, which prohibited foreign-based subsidiaries of U.S. companies from trading with Cuba, travel to Cuba by U.S citizens, and family remittances to Cuba (Lee). Most importantly, the Helms-Burton Act extended the territoria...
The United States embargo of Cuba has its roots planted in 1960, 53 years ago, when “the United States Congress authorized President Eisenhower to cut off the yearly quota of sugar to be imported from Cuba under the Sugar act of 1948… by 95 percent” (Hass 1998, 37). This was done in response to a growing number of anti-American developments during the height of the cold war, including the “expropriation of United States-owned properties on the island… [and] the Soviet Union [agreeing] to purchase sugar from Cuba and to supply Cuba with crude oil” (Hass 1998, 37). Bad sentiments continued to pile up as Cuba imposed restrictions on the United States Embassy and especially when, after the United States “officially broke off diplomatic ties with Cuba, and travel by United States citizens to Cuba was forbidden ... Castro openly proclaimed his revolution to be ‘socialist’” (Hass 1998, 38). The day after this, the Bay of Pigs invasion occurred, but it failed in its job to topple Castro (Hass 1998, 38). Left with no diplomatic options and a failed military attempt, the United States decided that the only way to end Castro’s socialist regime was to sever all ties, and from 1961 to 1996, a series of acts were passed prohibiting the majority of trade and interaction with Cuba. (Hass 1998, 38).
To Secretary of State John Hay, the Spanish-American War was a "splendid little war", one that would bring tremendous benefit to those fortunate colonies liberated from Spain. For those places where the Spanish were forcibly expelled, there was nothing splendid about either about the war or its aftermath. To state simply that war is hell and that change is disruptive is merely to state the obvious. Beyond this, many U.S. historians have characterized the results of U.S. intervention and subsequent occupation of Cuba, Puerto Rico and the Philippines as a bequest, an opportunity to enjoy previously unknown individual liberties, political self-determination and potential economic prosperity. Other historians have characterized the actions of the United States as nothing short of exploitative imperialism, designed to subjugate those who it considered inferior to a state of political and economic servitude.
In 1959, revolutionaries nationalized Cuba’s wealth and did not compensate U.S. companies for our efforts to fight against the rebels. They did, however, repay corporations from nations that did not fight. Because of this seizure of our property, the Cuban embargo was put into action. In fact, Cuba is the only country in the western
On April 17, 1961 one of the greatest foreign policy mistakes of the Cold War was made, the attempted invasion of the Bay of Pigs, Cuba. The failed invasion happened under the administration of John F. Kennedy and caused the deaths and imprisonment of over 1500 Cuban exiles fighting to over throw the rule of Fidel Castro. The aftermath caused much larger impacts towards United States foreign policy. The invasion made the United States look imperialistic to the rest of the world and allowed the Soviet Union to portray America as an aggressive and hostile country to its neighbors, which in turn allowed the Soviet Union to aid Cuba even more for future affairs. The Bay of Pigs also caused President Kennedy to distrust many of his advisers from the CIA for misinforming him. The CIA led him to believe the invasion would be over quickly and successfully after Kennedy had only been in office for three months. This distrust of his advisers certainly affected how Kennedy acted in future crises involving both Cuba and the USSR. This of course leads the question did the Kennedy Administration act appropriately for the Bay of Pigs invasion and how did the outcome affect United States foreign policy with Cuba and USSR?
... the majority of which sought refuge in the United States. With the fall of the Soviet Union, Cuba now stands at a crossroads. The battle cry has changed from “ Socialism or death to Resist, struggle and win” (Castro’s Cuba II). Hopefully, Castro and/or Cuba will not be forced into a market-based economy and all the materialistic commodities that go along with capitalism. In my opinion, Castro should hold out for as long as possible griping to the former battle cry “Socialism or death”. Only time will tell what the fate of Castro’s Cuba will be. Trade might once again flourish the economy, tourism might open up new economic opportunities and foreign investments from Italy, France and Spain could possibly dig Cuba out the current economic hole it’s in. Until then however, the battle against capitalism must not lose any of its vigor.
...tals.Cuba’s exporting dropped substantially due to the global economic downturn. Having low exporting rates called for huge losses in infrastructure and economy. Cuba’s previous investments in human development through past decisions have made for a great workforce. The problem is the economy’s insufficiency hasn’t been able to make good use of the this great work force. Because of Cuba’s commitment to education, health and a stable government, they have the potential for future growth as a country.
American settlers in East and West Florida declare independence and rebel against Spain for control of land.
The United States found ways to have defective products sent into Cuba which affected the negatively the Cubans (Winkler, 88). Sanctions were put on Cuba’s main export, sugar, which adversely affected Cuba’s economy (Swift). Cuba was dependent on the sugar crop to bring in money, through trading and exports, from other countries. The United States did not allow Cuba to send it sugar so Cuba lost a huge portion of money they usually received from America. The Cold War damaged the economic lives of the Cubans because they were unable to make money from selling and trading. The sanctions hurt the Cuban people by decreasing their access to social
The Cuban Embargo, also known as “el bloqueo” to Cuban citizens, was declared by the United States in 1960 to eliminate imports of Cuban goods. When the embargo was first set, it was only to eliminate food and medicine, but then on Feb. 7th, 1962 the embargo was extended to all exports. President Kennedy announced the embargo citing, “the subversive offensive of Sino-Soviet communism with which the government of Cuba is publicly aligned” (Galeano). “We have a hemispheric commitment to freedom and democracy and respect for human rights”, said Jose Cardenas, a former National Security Council staffer on Cuba. With only 90 miles of sea between the U.S. and Cuba the embargo chokes off Cuba’s number one trade partner and tourism of the island.
However the US played a much larger role in Cuba’s past and present than the building of casinos and the introduction of the first taints of corruption. In the past, even before Batista, Americans were resented by Cubans because the Americans made a lot of Cuba’s decisions. Under Batista, 80% of Cuban imports came from the US, and the US controlled at least 50% of sugar, utilities, phones and railroads. If Cuba was a business in the stock markets, then the US would have been close to owning 50% of its shares. When combined with a long history of US-backe...