Presentation On Closing Case of Chapter 7, International Business by Daniels Content : Timeline of U.S.-Cuba Relations Answers of the given Questions in the book

1. EMIS 516: International Business
Department of Management Information Systems (MIS)
University Of Dhaka

2.  H. M. Mehedi Hassan #20-007
 Md. Nazmul Hossain Sohel #20-024
 Md. Abu Saker Chowdhory #20-038
 Md. Firoz Rashid #20-066
 Mohammed Abdul Munem #20-075

3.  An analysis of the U.S. embargo on Cuba
◦ Political Impacts
◦ Economical, Commercial, and Financial Impacts
◦ Impacts on World Politics
What is the meaning of ‘Embargo’?
- an official ban on trade or other commercial activity with a
particular country

4. The U.S. Embargo on Cuba
Timeline of U.S.-Cuba Relations
Pros and Cons Of Doing Business with
Cuba
Answers of the given Questions

6. Cuban Dependency
on the U.S.
In 1950s, more than two-third
of Cuban foreign trade took
place with the United States
which made Cuba largely
dependent on the U.S.
Cuban exports to different U.S. cities before Castro.

7. Cuban Revolution
Fidel Castro and a group of
guerilla fighters successfully
revolt against President
Fulgencio Batista. Castro
establishes a revolutionary
socialist state.
Fidel Castro arrives in Havana after Fulgencio Batista's
ouster.

8. Growing Economic
Antagonism
Castro nationalizes all foreign
assets in Cuba, hikes taxes on
American imports, and
establishes trade deals with the
Soviet Union. President Dwight
D. Eisenhower retaliates by
slashing the import quota for
Cuban sugar, imposing a near-full
trade embargo, and cutting
off diplomatic ties with Cuba.
Castro signs a decree nationalizing American-owned
banks in Cuba.

9. Bay of Pigs Invasion
President John F. Kennedy
sends a brigade of CIA-sponsored
Cuban exiles to Cuba
in order to overthrow Fidel
Castro. Cuban armed forces
defeat CIA-sponsored Brigade
within three days.
American prisoners captured by Castro forces.

10. Full Embargo
Announced
The Kennedy administration
imposes a complete economic
embargo on Cuba, restricting travel
and trade. The embargo results in a
loss of approximately $1.126 trillion
over the next fifty years.
A mural in Havana reads, "Down with the blockade,"
referring to the fifty-year U.S. embargo.

11. Cuban Missile Crisis
Cuba allows the Soviet Union to
build a missile base on the island
under a secret agreement. U.S. spy
satellites discover the missiles and
Kennedy orders a naval blockade on
Cuba. The United States negotiates
with the USSR and agrees not to
invade Cuba and to withdraw its
nuclear missiles from Turkey and
Italy if the Soviet Union withdraws
its nuclear missiles from Cuba.
President John F. Kennedy addresses the country at
the height of the Cuban Missile Crisis.

12. 1963
•The US treasury department imposed a total freeze on
Cuban Govt. assets held in U.S.
•Exposed that the CIA had tried to airlift someone to
assassinate Castro and U.S. sponsorship of an invasion
by Cuban exiles at the Bay Of Pigs.

13. Mass Migration
Pressure
Cuba faces intense migratory
pressures as its economy suffers
from a spike in oil prices and
continued U.S. economic sanctions.
Thousands of Cubans fled Cuba and
reached to Florida , Miami and
other coastal states of the U.S. by
boats.
A U.S. Marine helps a child off of a Cuban refugee
boat.

14. 1990s
• Collapse of Soviet trading block
• Collapse of Soviet Union
1992
•The U.S. congress passed the Cuba Democracy Act.
•Cuba to hold democratic election before U.S. could repeal
the embargo.
1995
•The United Nations voted 117 to 3 against the U.S.
embargo; only Israel & Uzbekistan voted with U.S.

15. Helms-Burton Act
Passed
Cuba shots down two U.S. civilian
aircraft belonging to the anti-Castro
Miami-based group Brothers.
In reaction to this event, the U.S.
congress passes the Helms-Burton
Act to tighten the embargo on Cuba
and attempts to weaken Cuban ties
with non-U.S. foreign investors. The
act codifies the embargo, penalizes
foreign companies doing business
with Cuba.
President Clinton signs the Helms-Burton bill.

16. 2000
• U.S. started allowing agricultural, food & medical exports to
Cuba.
•Cuba quickly became 21st largest agricultural market for the
U.S. and the U.S. became 4th largest exporter to Cuba.
2005
• U.S. restricted remittance & travel to Cuba and required
advance payments for exports.
2009
• President Obama eased restrictions on travel and remittance
to Cuba, allowing to send unlimited remittance in Cuba.

17. • Highly qualified workforce
• Nearly perfect literacy rate
• High demand for foreign products and services
• Potential markets for U.S. Companies and
industries
• Possibility for tourism
• Huge agricultural market
Pros
• Potential for business with Cuba
-highly limited -low purchasing power of people
• Need to export enough to pay for imports
Cons

19. U.S. should not seek to tighten economic grip on Cuba.
Cuba is already a weak economy as compared to U.S.
Cuba is a very potential market.
Efficient labour at lower cost for U.S. industries.
Other countries of the world started favoring Cuba.

20. Yes, the U.S. government should normalize business relations
with Cuba.
• Highly qualified workforce
• Near-perfect literacy rates
• Demand for foreign good and services
• Market potential of Cuba is very high.
The most important stipulation should be that any
amount of political upheaval should not adversely affect the
terms and conditions of trade as agreed upon.

21. If I were Fidel Castro, I will definitely try to establish trade
relationship with the United States. It will permit me to save
face politically while contributing to the economic development
of the economy. So, I will take step first and invite U.S. policy
makers to negotiate for lifting the embargo. If they show
positive attitude by lifting banns and starting trade, other
countries and companies who are hesitate to invest in Cuba,
will feel free to invest in Cuba. Economic development
assistance can come in the form of direct aid and, possibly,
foreign direct investment, although there surely will be
substantial controls on either form.

22. U.S. is one of the very powerful world economy. Its trade
relations and political relations with other countries is
dominated and favored because of its strong position in the
world economy. Because of its power position , it implied
embargo on Cuba and also obliged other countries to follow the
same. The main reason behind imposing embargo was the
conflicts of political leaders in the 150s decade. The
consequences went on till 2006. Wherever, U.S. was able to
influence directly or indirectly with other countries-it did to
prevent from trading with Cuba and to weaken the Cuban
economy.