International business: US – Cuban trade
QUESTIONS:
The United States should not tighten the economic grip on Cuba. The growing unpopularity of the policy on the world stage puts the United States in a negative light in the international community. Due to the embargo, the United States is obligated to accept any number of migrants from Cuba who arrive on American soil. Lastly, the policy creates an enemy of the United States less than 90 miles off the coast. This has already proven the dangerous and hazardous potential in the Cuban Missile crisis. As a global hegemon, it is expected that the United states will suffer some animosity due to its position, but the existence of an outright enemy in its immediate sphere of geographic influence flies in the face of diplomatic and global stability.
6-4. Should the United States normalize business relations with Cuba? If so, what conditions might/ should the U.S. stipulate?
The United States should normalize relations with Cuba to both eliminate the state threat Cuba poses and increase their sphere of influence in the Latin American region. The United States should stipulate that Cuba undergo democratic elections and loosen restrictions on the Cuban people, if they were to normalize relations. These were some of the original issues first brought up at the onset of the embargo and should be maintained as an important and unwavering condition for economic reintegration. This is due to principle – otherwise, the 50-year embargo will have been for nought and the ill-will and hostility it fostered will have accomplished nothing.
6-5. 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?
The Cuban government’s current patron state is Venezuela. With Venezuela’s weakening economic position, Cuba should be looking for positive a positive economic relationship with the United States as well as a positive Balance of payments. The Castros will soon be out of office and possible will have passed on. As a result, a new generation of lawmakers can insist on greater cooperation with the United States to ensure domestic prosperity.
6-6. How do the structure and relationships of the U.S. political system influence the existence and specification of the trade embargo?
Congressional gridlock makes the prospect of lifting the embargo significantly more difficult. Reaching the necessary consensus to lift the embargo relies on a turning tide of policymakers endorsing the idea. The recent activity of the republican-controlled, American Congress makes this an unlikely scenario. Furthermore, the fact that this is the legacy policy of a lame-duck President in an ever-more divisive political environment makes the prospect of any meaningful alteration of the embargo all the more difficult. Hence, one of two things will have to occur: either the American Congress shifts to a Cuba-friendly policy; or a Republican President is elected who is both friendly to Cuba and able to build legislative coalitions in Congress.
6-7. Much 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 Caribbean countries?
Cuba is easily the largest island in the Caribbean and boasts a considerable tourist destination for many countries outside of the United States. Barring a massive influx in the number of American tourists to the Caribbean, the end of US travel restrictions to Cuba would absolutely reduce tourism to other Caribbean countries. This puts the United States in a grave position with respect to its immediate neighbours: whether or not to balance the diplomatic benefits of warming relations with one nation is worth the cooling of relations amongst other neighbouring states who experience the negative effects of said warming relations.
6-8. List and explain the advantages that might accrue to the United States if the embargo with Cuba were lifted.
