Even for the uneducated cigar smoker, Cuban cigars are known as the upper echelon of style and class. They have a distinct taste and feel and are considered by some as containing the world's best tobacco. Cuba's land is possibly the ideal place to grow the most tempting cigar tobacco in the world. Though other countries are making very similar cigars, Cuba's mystique still has a strong hold over cigar aficionados worldwide. Given the current popularity of cigar smoking in the United States, and the fact that Americans like the finer things' in life, it would only make sense that the Cuban cigar industry would be a good entity to devote your investing money in. However, an important aspect that must be considered is the fact that the importation of the Cuban cigar to the United States is illegal. Due to the trade embargo imposed on Cuba over forty years ago, the fine specimens that are Cuban cigars are still barred from reaching our borders even today.
John Hernandez is prospecting for good investment opportunities within the next month to make use of a one million dollar inheritance. He is an avid cigar smoker, and is excited about the possibility of the trade embargo with Cuba being lifted. With this just being speculation, the real issue is whether he should go forward in investing in the Cuban cigar market.
The most prominent problem facing external investment opportunities today for the Cuban cigar industry would be the forty plus years of a trade embargo with the United States. With the United States being the largest cigar market in the world, Cuba (and the individual investor) is missing out on a potential revenue goldmine. Obviously the potential slackening of the trade barrier would be an investor's dream within this industry, but the reality of the situation is still very unpredictable. With presidential elections looming in the United States, there is no way of knowing whether a candidate will stick with the current political policies concerning Cuba, or whether they will eradicate the embargo once they are elected to office (flip-flopping on issues is almost as assured of as death and taxes).
John has an interesting investing dilemma. There are many solutions to what he could do with his inheritance; however there are three obvious solutions: he could invest all of his money into the Cuban cigar market, he could partially invest his money in the market, or he could invest nothing in the market, and research other means of enhancing the returns on his money.
... the majority of which sought refuge in the United States. With the fall of the Soviet Union, Cuba now stands at a crossroads. The battle cry has changed from “ Socialism or death to Resist, struggle and win” (Castro’s Cuba II). Hopefully, Castro and/or Cuba will not be forced into a market-based economy and all the materialistic commodities that go along with capitalism. In my opinion, Castro should hold out for as long as possible griping to the former battle cry “Socialism or death”. Only time will tell what the fate of Castro’s Cuba will be. Trade might once again flourish the economy, tourism might open up new economic opportunities and foreign investments from Italy, France and Spain could possibly dig Cuba out the current economic hole it’s in. Until then however, the battle against capitalism must not lose any of its vigor.
Economically, Cubans “enjoyed one of the one of the highest standards of living in Latin America” (34). This is predominately due to the fact that Cuba exported half its sugar and two-thirds of it total exports into the U.S., and imported three-fourths of their total imports from the U.S. Although the U.S. (35). Although the U.S. boosted the Cuban economy, Cubans resented that they were still living at an economic level lower than Americans. The average Cuban income was one- third the average of Mississippi, the poorest state in the U.S. in th...
The United States embargo of Cuba has its roots planted in 1960, 53 years ago, when “the United States Congress authorized President Eisenhower to cut off the yearly quota of sugar to be imported from Cuba under the Sugar act of 1948… by 95 percent” (Hass 1998, 37). This was done in response to a growing number of anti-American developments during the height of the cold war, including the “expropriation of United States-owned properties on the island… [and] the Soviet Union [agreeing] to purchase sugar from Cuba and to supply Cuba with crude oil” (Hass 1998, 37). Bad sentiments continued to pile up as Cuba imposed restrictions on the United States Embassy and especially when, after the United States “officially broke off diplomatic ties with Cuba, and travel by United States citizens to Cuba was forbidden ... Castro openly proclaimed his revolution to be ‘socialist’” (Hass 1998, 38). The day after this, the Bay of Pigs invasion occurred, but it failed in its job to topple Castro (Hass 1998, 38). Left with no diplomatic options and a failed military attempt, the United States decided that the only way to end Castro’s socialist regime was to sever all ties, and from 1961 to 1996, a series of acts were passed prohibiting the majority of trade and interaction with Cuba. (Hass 1998, 38).
In 1959, revolutionaries nationalized Cuba’s wealth and did not compensate U.S. companies for our efforts to fight against the rebels. They did, however, repay corporations from nations that did not fight. Because of this seizure of our property, the Cuban embargo was put into action. In fact, Cuba is the only country in the western
Within the first two chapters of author Perez-Stable’s book, The Cuban Revolution: Origins, Course and Legacy, he focuses much on economic aspects of Cuba’s dependence on the United S...
Cuba’s plan is to put together just enough market incentives into a socialist economy to enhance productivity, jump start growth, and create good jobs without sacrificing the essence of Cuba’s socialist revolution. Ambassador Carlos Alzugaray stated, Cuba is trying to carry out a “gradual but relentless” updating of socialism driven by economic and political necessity as well as the country’s unique realities (Starr, 2013).
The sanctions placed on Cuba are not as stringently guarded as they were when first implemented. In today’s society, many US businessmen bypass the sanctions placed on Cuba by traveling to another country first and then into Cuba to entertain business ventures and find quality cigars. It could be said that the goals of the sanctions were met, since Castro’s regime is slowly dying, but this was not due to the sanctions themselves but instead to the lack of monetary income from the Soviet Union.
Whether it 's for the music, people or food, Cuba is a popular and interesting place to visit. Cuba is located between the Caribbean Sea and the North Atlantic Ocean. At 42,426 square miles, Cuba is the largest island in the Caribbean and the 105th largest country in the world. Cuba has a population of 11.1 million. Out of that 11.1 million, Havana is home to 2.1 million (Nation Facts). The official language of Cuba is Spanish, but English and French are spoken throughout the country. The most practiced religion of Cuba is Roman Catholicism, but a large number of people follow the Afro-Cuban and Protestant religions. The president of Cuba is currently Raúl Castro, which is Fidel Castro 's brother. The currency of Cuba is the Cuban peso (Cuba).
Before I went to Cuba, I knew nothing about the Cuba Embargo, let alone the country itself. It came to my attention when I arrived at the Varadero Airport. Glancing at the arrivals screen, I expected to see many flights from American cities from Miami or New York. But I saw none. Most of the airplanes that arrived were from Canada, Europe and South America. Although it striked some curiosity out of me, it did not really matter until it was brought to my attention by my tour guide; that the United States started an embargo on Cuba 50 years ago.
economic growth comes from agriculture and exports to and from Europe. Since America has had an embargo on Cuba since 1962 neither countries trade with each other because of many disagreements about governing techniques and Fidel's unwillingness to comply with U.S. instructions. Cuba’s long history and culture has contributed to many economic and social growth through out the world, but Cuba is still struggling to try to stable their economy.
Havana “In Cuba and specifically in Havana there’s a sort of energy that turns every situation into something unexpected” (Fernando Perez). The capital city of Cuba is full of vibrant culture, ancient history, and beautiful landscape. Once a booming tourist destination has now lost some of its attractiveness due to Socialist rule. However, the overall beauty has not dissipated and the culture is just as active as ever.
The Cuban Embargo, also known as “el bloqueo” to Cuban citizens, was declared by the United States in 1960 to eliminate imports of Cuban goods. When the embargo was first set, it was only to eliminate food and medicine, but then on Feb. 7th, 1962 the embargo was extended to all exports. President Kennedy announced the embargo citing, “the subversive offensive of Sino-Soviet communism with which the government of Cuba is publicly aligned” (Galeano). “We have a hemispheric commitment to freedom and democracy and respect for human rights”, said Jose Cardenas, a former National Security Council staffer on Cuba. With only 90 miles of sea between the U.S. and Cuba the embargo chokes off Cuba’s number one trade partner and tourism of the island.
Sugar has been both Cuba’s greatest blessing and curse. Cuba’s sugar frontier was able to develop due to its environment, technology, and slave labor availability. It became an everyday lifestyle for the people that inhabited it. The failures of other industries in Cuba accelerated the growth of a booming sugar crop that lasted many decades and allowed for Cuba to become more prominent in the world. Despite the extreme success of the sugar industry in Cuba, it eventually fell due to societal, economic, and environmental changes within the country.
For my research paper I am examining, “how large of an influence did the Mafia have in Cuba and how did their presence affect Cuban-American relations and pre-existing Cuban Culture?” Ever since I was young I was highly interested in organized crime and the mysteries behind the way that society operated. Interestingly and also not so fortunately the organized crime network hits my family at a personal level. My father grew up in Brooklyn, and while his direct lineage including himself was straight and clean, some of his uncles took a more crooked path in life. More specifically, my extended family had some tight affiliations to Sammy “The Bull” Gravano. Before I digress, these real life and personal stories on top of my aforementioned interest
However the US played a much larger role in Cuba’s past and present than the building of casinos and the introduction of the first taints of corruption. In the past, even before Batista, Americans were resented by Cubans because the Americans made a lot of Cuba’s decisions. Under Batista, 80% of Cuban imports came from the US, and the US controlled at least 50% of sugar, utilities, phones and railroads. If Cuba was a business in the stock markets, then the US would have been close to owning 50% of its shares. When combined with a long history of US-backe...