...Case 5-11 Case 5-1 America’s Cuban Conundrum: The Assignment Tonisha Pearson Strayer University – MKT 505: International Marketing July 29, 2012 Dr. David Holness, Instructor 1. Analyze the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. The key issue that prompted the EU to take the Helms-Burton dispute to the WTO is the theory that law argues against the governments’ authority and the principle of International Law. The EU believed that there are measures in the Act that are divergent to the obligations of the United States of America in the WTO Agreements, particularly the GATS, Article 14 applying to trade and services, and GATT , Article 21 applying to trade in goods (Toledo, 2011). According to John H. Jackson, Andreas F. Lowenfeld, both Professors of Law, it is argued that the GAT and GATT contracts would provide a defense for the United States to many if not all of the United States Helms-Burton measures, even if some of these measures would otherwise be considered to be inconsistent with United States treaty obligations. These exceptions, however if given a broad interpretation could undermine the whole WTO treaty and impair the security and stability of the world trading system for which the WTO has been created. On the other hand, it is extremely important to all nations that national security to a requirement, and for an international...
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...high level issue is embedded in this case. The title would lead the reader to think that the case was about Sherritt Corporation. When in fact it’s a larger economic issue affecting U.S. companies versus all non-U.S. companies around the world. (Except those from Israel & Uzbekistan) Sherritt was just the first company to be affected by the Helms-Burton law. It was later pointed out in the case that Sherritt had no U.S. business relations. Essentially the law only inconvenienced the members of the board and their families. The real issue is around the thirty plus years of, and now tightening, sanctions by the U.S. against Cuba. As a result not only have U.S. companies lost assets in Cuba from 30 years ago, they and others are in a worsening position to conducting business in the country when the sanctions are finally lifted. We believe there is another economic issue under the surface faced by the U.S. in this situation. While U.S. companies unable to conduct business with Cuba there is no subsequent GDP benefit for our country. Meanwhile, we continue to take large numbers of Cuban citizens as immigrants. The increased population negatively affects unemployment, and is amplified by the fact that our companies can’t conduct business with their country of origin. Another words if allowing our businesses to conduct trade with Cuba would create more job opportunities, essentially offsetting the immigration effect on unemployment. Analysis The U.S. sanctions were having some desired...
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...States seek to tighten the economic grip on Cuba? If so, why? The relationship between United States and Cuba deteriorated when the us corporations in Cuba were nationalized during the Cuban Revolution, since then the United States has declined to do business with Cuba. In my opinion the US should open his market and stop the embargo to Cuba because it will open many opportunities and break a lot of barriers between the countries. 2. Should the United States normalize business relations with Cuba? If so, should the United States stipulate any conditions? Yes they should normalize business because that would give opportunities to US corporation to sell their products in that country and therefore the economy of both countries will improve, in my opinion the condition that best suits the US should be that Cuba returns all the companies to the US companies. 3. 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 were Raul Castro I would try to reconcile with the US because that would mean breaking trade barriers between the countries and a dramatically improvement in exports of their main products (Sugar Caine, Rum and Cigars). Also tourism will improve making Cuba an attractive destination to US citizens. 4. How does the structure and relationships of the U.S, political system influence the existence and specification of the trade embargo? The political system...
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...No, it is prescribed that U.S. should not try to tighten their economic grip on Cuba for the most part in light of the fact that it would more probable hurt their economy than accomplish its foreign policy objectives, which have turned out to be unattainable for almost forty years. Cuba is an extremely potential business sector for U.S. commercial enterprises and organizations. Likewise the workforce is proficient, so there is a plausibility of effective work at lower expense for U.S. commercial enterprises (Daniels, 1998). Also, US may look to log jam the stream of dollars to Cuba to debilitate Castro's positions and pace his destruction; it may affect American economy for the most part influencing aviation organizations and money exchanges...
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...The United States embargo against Cuba is a commercial, economic, and financial embargo imposed by the United States on Cuba. In February 1962, President John F. Kennedy officially proclaimed an embargo on trade between the United States and Cuba. Ever since the U.S. embargo with Cuba began, the relationship between the two countries deteriorated to the point where citizens could not even travel to the opposing land for leisure. As years and decades passed, the rift between the two countries located 90 miles apart only grew deeper. There is no doubt that the embargo has had substantial effects on both countries. The ban between the two countries has affected both political and economic aspects, as well as foreign trade policies. Although there...
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...policy is the strategy implemented by this government toward other countries as a means of protection of economics and national interest. The Cuban foreign policy has implemented rules and guidelines to control the import and export of American products. Foreign policy is important for the American people as an objective that guides the activities and relationships of the government and its interactions with other governments such as Cuba. The development of foreign policy has been influenced by domestic considerations, in this case farming and tourism; the policies or behaviors of other governments, like socialism and human rights offenses; and plans to advance specific geopolitical designs, such as whether American relations with Cuba could nurture any democratic aspirations of the Cuban government. American foreign policy toward Cuba has been an attempt to economically isolate the Cuban government in an effort to undermine the regime and deprive it of resources and put pressure on the Castro government to turn away from communism. Congress passed a bill in 1960, which barred Americans from trading with, investing in, or traveling to Cuba. It was congressional legislation as a foreign policy tool with the purpose of helping the Cuban people achieve freedom and a better way of life. However, the facts and opinions expressed in this article would imply that the embargo has failed in all aspects! It removed a large market for several areas of the American economy, and...
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...Should USA Lift Embargo on Cuba I. Introduction A. The island of Cuba has been the source of both enormous economic profits and problems for the United States B. First, provide information that will help you to understand what, when and why it happened. Second, mention the cons that the US has by lifting the embargo on Cuba, why it shouldn’t, and the problems that can cause. Finally, mention the pros that the US has by lifting embargo on Cuba, and why it should. II. Body A. The embargo consists of economic sanctions against Cuba and restrictions on Cuban travel and commerce for all people and companies under US jurisdiction. However, 1. Revolutionary Fidel Castro established Cuba as the first Communist state in the Western Hemisphere (1959) Therefore, 2. Cuban Democracy Act(1992): Maintaining sanctions on Cuba so long as the Cuban government continues to refuse to move toward "democratization and greater respect for human rights". Helms–Burton Act – 1996. However, B. The embargo enables the United States to apply pressure on the Cuban government to improve human rights. For example, 1. Will make the United States appear weak. 2. People say that lifting the sanctions would be an act of appeasement. The United States should not risk sending the message that it can be waited out or that seizing US property in foreign countries is ok. In contrast, C. Lifting the embargo will benefit the people of Cuba, the interest of the U.S and will harm Castro’s power. ...
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...my opinion on why the U.S. should not lift the embargo on Cuba. Many critics have expressed their opinion as to why, the embargo should be lifted. This paper will explain why united States order a trade embargo against Cuba? What are the results for both countries? [What was the effect of the embargo on the citizens of Cuba and what was the result of the embargo on the US?], and what did the Cuban Government do to retaliate against the Trade Embargo? Finally, look at the strategic results and necessity for trade embargo in a globally interconnected economy. When the United States defeated Spain in the Spanish American war of 1898, Cuba along with Puerto Rico and Guam were signed over to the United States by Spain. The United States had the right to involve in the affairs of Cuba at any time. When Castro overthrew the existing government, run by President Batista, the United States supported this action by imposing arms embargo against the Batista government in 1958. Then in or about 1960, Castro not only seized private lands and companies of Cuban citizens, but also subsidiaries of the United States of America. This is when the Eisenhower administration imposed trade restriction with the exception of food and medical supplies. Not only was Castro started trading with the Soviet Union; but the Soviet Union also building missile bases in Cuba; the United States severed all ties and imposed a permanent embargo on Cuba at the direction of President Kennedy on February...
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...the Eisenhower administration placed an embargo on exports to Cuba. Until recently, the US has maintained a strict economic embargo against Cuba. Loosening restrictions on the US embargo against Cuba allows the two countries separated by approximately 90 miles of water to begin to take the steps or normalize their trade relations with hopes to promote “a democratic, prosperous, and stable Cuba.” There was a time when the United States and Cuba engaged in trade. Towards the end of the 19th century the United States were in control of Cuba’s sugar industry and purchased a large majority of Cuba’s exports; close to 90% of their total exports. Just a few years before the trade embargo and travel restrictions were set...
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...United States would indeed defend itself. When Flexible Response was indoctrinated, the U.S. had already had a shaky relationship with Cuba, with which whom the doctrine was set against. The President had allowed a group of armed militias to enter Cuba to overthrow the government, they were unsuccessful. Cuba Cuba is the largest of the islands located in the West Indies. It is 42,803 square miles and just ninety miles from the coastline of the Florida Keys. A person leaving the tip of Florida could travel there in roughly one hour. Prior to the Cuban Missile Crisis the United States had a vested interest in the country, its economics and its politics. Cuba had traded sugar, tobacco and even tourism with the U.S. and many American people had land, homes and businesses there. In fact the relationship likened to that of a parent/child, the U.S. was considering annexing Cuba, with the country being only 90 miles off the coast of Florida, why not? We were assisting them financially, militarily and to some degree politically. I lieu of all of this information it only seemed feasible that we would want to have Cuba as a border state to the U.S. (www.historyofcuba.com). The Doctrine When Fidel Castro joined sides with the Soviets in 1962, President Kennedy’s doctrine went into effect this is when the whole scope of our relationship changed. A trade embargo was placed on the country, which immediately halted any product from...
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...responsible for the trade being relinquished between Cuba and the US? Rationale: I choose to do this topic as I am deeply intrigued as to what really were the challenges faced by the United States to relinquish the trade between itself and Cuba during the cuban revolution of the 20th century.I hope that this study will be beneficial to readers who will endevour to do this topic or to those individuals who just want futher readings on what actually led to the relationship between Cuba and the United States being destroyed. Introduction: In July 1953, Castro led about 120 men in an attack on the Moncada army barracks in Santiago de Cuba. The assault failed, Castro was captured and sentenced to 15 years in prison, and many of his men were killed. The U.S.-backed Batista, looking to improve his authoritarian image, subsequently Castro was released in 1955 as part of a general amnesty. Castro ended up in Mexico, where he met fellow revolutionary Ernesto “Che” Guevara and plotted his return. In 1960. Castro nationalized all U.S.-owned businesses, including oil refineries, factories and casinos. This prompted the United States to end diplomatic relations and impose a trade embargo that still stands today.As a country with a new government, Cuba seemed newly established to the world around it. Change was occurring in Cuba, and the U.S. was not hesitant to impose ideas and regulations they hoped would maintain their influence within Cuba. However, Castro began to adopt policies to end...
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...TRADE EMBARGO AGAINST CUBA It’s hard to believe that 55 years ago U.S. imposed its first trade embargo, which still stands up to today. Both sides suffer from it. And the whole thing about the embargo has recently been really criticised by everyone. So the question remains – why on Earth don’t you lift it? So presumably the same question appeared in the mind of the President Obama. And lately, he has announced that he wants to re-establish diplomatic relations with Cuba. “To the Cuban people, America extends a hand of friendship ”, he said. ‘Since the President took office in 2009, he has taken steps to support the ability of the Cuban people to gain greater control over their own lives and determine their country’s future. Now, the President is taking the next steps to renew our leadership in the Americas, end our outdated approach on Cuba, and promote more effective change that supports the Cuban people and our national security interests.’( "President Obama Delivered a Statement on Cuba." The WHITE HOUSE. 17 Dec. 2014. Web. 1 May 2015. <https://www.whitehouse.gov/issues/foreign-policy/cuba>.) It seems to me as if this would be an especially good time for a change in America’s relations with Cuba and that the moment has finally come to put an end to this mess that not only economy of both countries suffers from but the real people too, and to admit that the embargo has to be lifted. The U.S. trade embargo on Cuba was placed after World War II by the President Eisenhower...
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...have chosen to propose two new products or services will be John Deere and the country I will focus my responses on is Cuba. In 1960, a trade embargo was imposed on Cuba by the United States, but on December 2014, the current United States President stated that he plans on lifting the trade embargo. Though an exact date has not been given “the initial surge of excitement among U.S. businesses after December 17 was palpable: Finally, an opportunity to enter a largely unexploited market, forbidden for half a century” ("Let's Make a Deal: Doing Business in Cuba," n.d.) This opportunity will allow John Deere to offer products such as their heavy farming equipment. The two products I have chosen that will be new to their market is heavy duty compact tractors and seeding/planting tractors. “John Deere tractors would enable local farmers to raise more crops many farmers work their fields with teams of oxen, and Cuba imports two-thirds of its food” (Cuban market could be boon to U.S. businesses. (n.d.)) A1.a Method The target market for the products are the farmers of the urban and organic farms in Cuba. The three different methods that will help me determine that there is both a need as well as an existing market include, focus groups, the internet search engines such as Google, and government sources. Since the web/the internet, and mobile access is rare in Cuba, I wouldn’t use methods that were dependent on technology. The first method I would use would be focus groups. The group...
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...STRAYER UNEVERSITY DR. JEAN GORDON APRIL 5, 2011 American and European companies look at Cuba as a fresh market that would become a great venture for short and long term investments. However, the United States and Cuban affairs never condensed the high tension that was started in 1959. The economical siege started with the trade restriction dilemma between the U.S. and Cuba in 1959 when Fidel Castro took over the government in Cuba. Fidel Castro first action, as a young leader for the newest communist nation, was taking over all private sector businesses and properties including those were owned by American inverters. Castro disregarded all negotiation attempts and refused to reimburse the original owners; simply he seized all private sector properties and businesses using military forces costing many U.S. inverters to lose millions of dollars in 1959. Those properties were estimated to be around 1.8 billion dollars or about 6 billion dollars in present’s day (Keegan & Green, 2011). In response to the United States political and economic pressure on the Cuban regime, during the cold war, Cuba joined the other side of the battle by becoming an ally of the Soviet Union to take advantage of the Soviet Union economic and military aids. As a fee for such aids, Fidel Castro had to allow the Soviet Union to place nuclear armed short and mid-range missiles in Cuba which grabbed the U.S attention. The Soviet Union nuclear missiles system did not have the long range...
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...U.S. Embargo Against Cuba Needs to End Park University The sixties have been described as “America’s most historically and culturally complex decade” (The Sixties: Timeline, 2005). It was the decade of many changes and events that helped shape our culture and our country into what it is today. The 1960’s was the decade that saw the likes of famous people like John F. Kennedy and Martin Luther King, Jr., as well as historical events like the first Woodstock and the race to space. It was the decade of the Vietnam War and Soviet Spies, and it was the decade that saw the end of the relationship between the United States and the small island nation just 90 miles off its coast: Cuba. On February 7th, 1962, President John F. Kennedy signed a Proclamation that ended and blocked all trade with Cuba. In it he wrote, “[I] Hereby prohibit…the importation into the United States of all goods of Cuban origin and all goods imported from or through Cuba” (Proclamation 3447 – Embargo All Trade With Cuba, 1962). What exactly is an embargo? The Merriam-Webster Dictionary describes an embargo as an order of a government prohibiting the departure of commercial ships from its ports and a legal prohibition on commerce. One of the main purposes of the embargo against Cuba was simply to deny hard currency to the Cuban government. However, it seems that purpose was one that did not really work. Even with the embargo in place, American dollars, still to this day, make its way into the hands...
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