Project: Conducting Business in Cuba
There are several things that a business should consider before doing business with Cuba. Do your research before investing in Cuba because it is illegal for most U.S. companies to expand their operations into Cuba due to the trade embargo that was put in place in 1962 and is still in effect today. Another issue that could pose a problem is the American-Cuba treaty of 1903 that forbids private enterprise.
Language barriers are something else to think about before doing business in Cuban. The majority of the Cuban population speaks a Caribbean variation of Spanish or Haitian Creole. Few speak English, mainly businessmen.
Depending on the type of business that the U.S. decides to bring to Cuba, location may influence their decision. Cuba is a tropical, flat terrain; surrounded by water with a few mountain toward the south. Cuba typically has a hot climate with two seasons; their dry season from November to April and their rainy season from May to October (also known as hurricane season). These weather conditions can pose a threat to agriculture resulting in inefficient resources for the people of Cuba. …show more content…
Cuba has been stagnate for almost two decades, unable to generate higher productivity caused by fixed capital investment. Cuba would need to spend billions of dollars on communication and transportation upgrades. The lack of internet access and fuel for transportation could be bad for business.
Dual currency is used by the Cuban government (CUC and CUP) which can be confusing when starting a business in Cuba. Two types of currency is useful for exerting economic control but it weakens the competitiveness of Cuban exports and also restricts the purchasing power of Cuban
There are several things that a business should consider before doing business with Cuba. Do your research before investing in Cuba because it is illegal for most U.S. companies to expand their operations into Cuba due to the trade embargo that was put in place in 1962 and is still in effect today. Another issue that could pose a problem is the American-Cuba treaty of 1903 that forbids private enterprise.
Language barriers are something else to think about before doing business in Cuban. The majority of the Cuban population speaks a Caribbean variation of Spanish or Haitian Creole. Few speak English, mainly businessmen.
Depending on the type of business that the U.S. decides to bring to Cuba, location may influence their decision. Cuba is a tropical, flat terrain; surrounded by water with a few mountain toward the south. Cuba typically has a hot climate with two seasons; their dry season from November to April and their rainy season from May to October (also known as hurricane season). These weather conditions can pose a threat to agriculture resulting in inefficient resources for the people of Cuba. …show more content…
Cuba has been stagnate for almost two decades, unable to generate higher productivity caused by fixed capital investment. Cuba would need to spend billions of dollars on communication and transportation upgrades. The lack of internet access and fuel for transportation could be bad for business.
Dual currency is used by the Cuban government (CUC and CUP) which can be confusing when starting a business in Cuba. Two types of currency is useful for exerting economic control but it weakens the competitiveness of Cuban exports and also restricts the purchasing power of Cuban