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Cuba Comes Off Its Sugar High

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1. Why do you think the Cuban government requires non-Cuban businesses to hire and pay workers only through the government? Do you think it is ethical for non-Cuban businesses to enter into partnerships with the Cuban government? Why or why not? Cuba was bartering with its communist allies in return for goods. The sale of sugar was grossing over $5 billion. After the Soviet Union collapsed, the gross income from sugar dropped to $20 million. The Cuban government searched for methods to raise income and cut costs. They began by closing inefficient sugar mills and eventually shut down half of the island’s mills. Cuba could not begin exporting to the United States due to the embargo. They turned to Canada, Mexico, and Europe for the sale of sugar. Cuba began to search for a new export and found they held a large reserve of nickel. International mining companies saw the nickel reserve as a source of income and tried to establish relations with Cuba. Cuba saw that they had something other companies wanted and decided to exploit their desire to conduct business with them. Many restrictions and laws were established to milk international companies for extra money. The established laws that required non-Cuban investors to use the government to hire, fire, and pay its workers. This allowed to the government to choose exploitable workers for positions in the mills and mines. The government controlled the worker’s wages in order to keep a cut for themselves. One company was found to be paying the government $9,500 per year per worker and the workers would only receive $120 to $144 per year. This left the government with a large chuck of employee wages. It would be unethical for an international company to conduct business with the Cuban government because providing business with the government supports the actions of the government. The

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