Free Essay

The United States Political and Economy

In: Business and Management

Submitted By haak78
Words 650
Pages 3
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 missiles capability; those short and mid-range missiles were the answer if they were closer to launch nuclear attacks the U.S east coast (An Overview of the Crisis, 1997).
These actions trigger American concern, since that time the U.S. government placed trade embargo against Cuba. The U.S government prohibited their citizens from traveling to Cuba besides all private sector companies from conducting or associates with any type of business in Cuban. Even though Castro backed down on short and mid-range USSR missiles and asked his allies, the former Soviet Union, to remove those missiles out of Cuban soil, Castro never gave back any of those luxury hotels and private American businesses or reimbursed the investors. Also, he kept the communist state as the guide for the rest of the internal and international affairs’ policies. Therefore, the trade embargo against Cuba still in place until an essential change in Communist Cuba’s strategy comes to play (An Overview of the Crisis, 1997). There are both economic and political barriers between the United States and Cuba. For instance, for the private companies and investors to conduct business safely and successfully in Cuba, healthier political relationship and trust between the two countries must occur. Cuban trade sanctions are far tougher than those imposed by the United States against Iran, North Korea, and old Libyan regime. Poor relationship between the U.S. government and Cuban regime caused the American private companies and investors to oversight the great opportunity to distribute their merchandises in possible Cuban’s market.

The resolution to the trade problem with Cuba will be determined when the Cuban regime shows progress in complying with the international human rights and apply more flexibility in democracy. Such positive actions from Cuban government would allow western private companies and inverters to reinvest in Cuba peacefully. As well as, returning all of the taken properties and reimburse the American inverters for their lost.

An Overview of the Crisis. (1997). Retrieved May 5, 2011, from thinkquest:
CUBA: Confiscation. (1959, June 1). Retrieved May 5, 2011, from Time:,9171,811136-2,00.html
Keegan, W. J., & Green, M. C. (2011). Global marketing: 2011 custom edition (6th Ed.). Upper Saddle River, NJ: Prentice Hall/ Pearson.

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