America’s Embargo on Cuba Your Name


America’sEmbargo on Cuba



Americahas imposed strong restrictions regarding trade and other engagementson Cuba. This embargo has lasted for over 50 years, making it aforeign resilient policy. Reduction of certain restrictions asimposed by the regime of President George W. Bush and that ofPresident Barrack Obama has been received by a number of economistsas a way of allowing bilateral trade for the benefit of the twoeconomies. Apart from export of highly skilled labor, tourism is oneof the greatest sources of foreign income for Cuba. America’s banon harsh trade regulations on Cuba will do a great deal on thisCaribbean nation, leading to increase in foreign income. This papertouches on various aspects concerned about the trade link between theUnited States of America and Cuba.

Whythe United States should tighten the Economic Grip on Cuba

Thegovernment of the US is one of the three nations across the worldthat have established and sustained the Cuba blockage. The other twoare Israel and Uzbekistan. Entire elimination of the trade embargowould mean that the United States should remove all specialrestrictions on trade and travel against Cuba. While some peoplewould look at this as a weakness on the side of the U.S, I wouldargue on the importance of tightening this economic grip. Therationale for such an enactment would mean that the objectives of theU.S in implementing this embargo have failed. This is justified bythe number of people sneaking from America to Cuba illegitimately. In a similar manner, the American companies have been prevented fromcompeting for job opportunities created by tourism in Cuba. Such amove postulates that the U.S would be better off in economic sphereswhile liberalization in Cuba would be enhanced (Daniels, Radebaughand Suvillan, 2014). In order for the situation of Cuba to improve, acompany has to be in a position to invest in such a challengingsurrounding devoid of being omitted from extremely significantmarkets such as that of the US.

Whythe United States Should Normalize Business Relations with Cuba andConditions to be Stipulated

Theembargo has great financial effects on the U.S companies. Whereas ithas affected Cuba in aspects like international banking andinternational mergers as well as acquisitions, the Helms- Burton Acthas been met with great resistance within international spheres. Snow(2007) elaborates that in retaliation to this act, internationalorganizations and trade blocks such as the North America Free TradeAgreement (NAFTA), the European Union (EU), the World TradeOrganization (WTO), Latin America and Caribbean nations have setregulations to oppose this move. Time after time, this act has grownweak since the UN members have continuously voted against it. Takinga business perspective, normalization of business relations betweenthe U.S and Cuba has greater benefits to America than it has to Cubaparticularly in tourism. Cuba should be advised on the other hand toprovide favorable conditions for foreign investors. Politicalbureaucracy should also be minimized to encourage business relations(Salvucci and Richards, 2000).

TheKind of Trade Relationships with the U.S I Would Accept as a CubanLeader

Cubais an economic giant though it has not utilized its potential to thefullest. There are still sectors that investors can tap in and makemost from them. Its labor force has not developed the rightefficiency to attract direct foreign investment after a half acentury of totalitarian regime and an economy which is centrallyplanned. As a leader I would encourage America’s investment inhealth and agriculture. These are sectors where Cuba is known to havethe greatest weakness. Since Cuba still depends on externalbenefactors for energy despite having oil fields, I would woo the U.Sinto Cuban oil sector with a better energy production policy.

Howthe Structure and Relationships of the U.S. Political SystemInfluences the Existence and Specification of the Trade Embargo

Inthe terms of structure, the Congress and the president listed toactivists and crusade donors who oppose the regime of Castro.Moreover, America has a long standing antagonistic association withcountries that are communist thus making the policy changes dubious.The trade embargo between America and Cuba is deep rooted andextensive. This could be attributed to the powers held by theAmerican senate. While presidents such as George Bush and Obama havetried to coax fellow politicians on passing regulations that do awaywith such bans, some of their efforts have not succeeded (Harnandez,2000).

Effectof Ending Travel Restrictions on Cuba and other Caribbean Countries

Tourismis a major beneficiary of the lifting of the embargo. Normalizing therelations between Cuba and the US draws attention of the leadingplayers in the tourism sector in Caribbean countries. The attentionwill definitely shift to the possible effect of the island onregional tourism. Economists from Jamaica, Puerto Rico Bahamas andDominican Republic have argued that lifting the embargo on Cuba wouldlead to a decline in the number of tourists visiting these countries.The number of tourists travelling to Cuba would increase by about1.15 million annually (Daniels et al, 2014).

Advantagesthat might accrue to the United States if the Embargo with Cuba wereLifted

Manydecades have passed since the US placed its first embargo on tradewith Cuba. Lobbyists argue that it is time for the embargo to belifted. The question that emanates here is whether there are anyadvantages of lifting the embargo. America has a lot to gain fromCuba if it lifts the embargo. First, there will be free directinvestment of American companies in Cuba. According to Snow (2007),this will lead to increased foreign income to America. Despite this,American companies will increase their competitive advantage infields like agribusiness. With the Cuba’s dollar deficit, much ofthe invested money will come back to the U.S in the form ofagricultural purchases.


Daniels,J. D., Radebaugh, L. H.and Sullivan, D. P. (2014) InternationalBusiness: Environments and Operations, 15th Edition[VitalSource Bookshelf version]. Retrieved from

Hernández-Catá,E. (2000) “The Fall and Recovery of the Cuban Economy in the1990s: Mirage or Reality” IMFWorking PaperWP/01/48

Salvucci,L. and Richard S. (2000) “Cuba and the Latin American Terms ofTrade:

Snow,A. (2007) “Cuba Examines Problems in Food Production and HighPrices, Seeking Ways to Better Feed People,” Worldstream,Associated Press, June