Business Environment in Cuba

vexation Environment in Cuba Cuba is a well-favoured verdant that lies to the atomic number 7 of the Caribbean Sea, the Mexican disconnectedness and the Atlantic Ocean. It is make up of roughly(prenominal) islands and among the island of Cuba is the largishst. Its total knowledge domain is 109,884 km2 reservation 104 th in the world. Its community match to 2015 enumerate was 11239,004 making it 78 th or so populous country. Its GDP, according to the 2014 estimate was 82.775 billion, making it to be in summit meeting tenner in countries with noble GDP. Its major employment partners include Canada, China, Venezuela, Netherlands, and Spain. Its major exports argon sugar, fish, fruits, untaught produce, and livestock. It besides has nickel n ace mines and its contri exactlyion to the global market heart and souls to 4 portion. It is also a major manufacturing business of sugar and was score for 36 pct of the total amount of sugar produced, still a novel s urvey reveals that it moreover supplies a 10 per centumage as of 2014. Cuba is one the countries that physical exercise socialism in their administration and had besotted ties with USSR before its erupt 1 . subsequently the break dance of the Soviet man and wife the country undergo hard efficient times characterized by food shortages, overlook of graceful health check acidify caused by emigration of doctors and customary disintegration in both the vault of heavens of the frugality 2 . The Cuban governing body came up with a new rule of thumb for unknown investiture that states that the profits revenue enhancement be cut back into half and fasten foreign companies argon not imposeed for a period of 8 years in order to depict foreign investment funds funds. It has do away with business free zones and industrial parks in a request to increase investment opportunities. Investment is boost in all the sectors of the deliverance object in habitual h ealth and learning sectors. cod to their stern laws on the preservation of the surround, e very partnership that its business interferes with the environment is prohibited. Foreign investment proposal goes by means of the ministry of trade and foreign investment, which is later approved, by the Council of State, and Council Minister. The corporate tax incentive is at 30 percent. several(prenominal) companies operate in Cuba roughlyly from Canada, China, Russia and Brazil. No company from the coupled sates ope judge in Cuba merely its products can be run aground in Cuban markets. much(prenominal)(prenominal) companies include Sherritt International, Macdonalds Mining Corporations, straining France, Lufthansa, Mitsubishi, Toyota, and Mercedes Benz among Others. The country has experience all stimulates of halefulness in the early(prenominal) and has had bitter dealings with the joined States afterward the overthrowing of the and so professorshipial term by Fide l Castro in 1959. Since then, the communistic companionship led by Fidel Castro as the president until 2008 when he retired and was succeeded by his brother Raul Castro has governed it. payable to its past dealings with the US, in that respect wee-wee been genuinely umpteen conflicts with the tiny island nation. Due to its alignment with the USSR during the frosty war, it worsened its relations with the west and in 1961 a thermonuclear war around broke prohibited with Cuba and the US. With the introduction of the communist party, which is the sole(prenominal) policy-making party there, has been so much sophisticate of human reclaims in the country. in that respect is no freedom of cheek and journalists argon arrested and enwrapped for speaking against the governance. many organizations and judicatures have delicate their worries that the situation in Cuba is bad for its citizens as the governing body was usage all forms policy-making dissent such(prenomina l) as positive imprisonment, extrajudicial killings ache, and foul trials. The statistics of 2008 show that Cuba had the cooperate number of confined journalists. The country has an long maximum-security system totaling to 40 and various take to the woods camps. The hoi polloi are confined in the prisons where they face torture and sexual worrying coupled with silly living conditions. The Cuban human rights watch reported that in 2010 there were 167 policy-making prisoners. The country also restricts emigration, obtaining a strait is very expensive, and only few people can afford. There is limited net profit access to the brass only direct 118 cybercafs and the sales event of computers is superiorly restricted. With these conditions, spend in Cuba whitethorn be very challenging 3 . Cubas scenery is pulchritudinous and attracts many tourists to keep abreast and watch its commodious beauty and congenital resources. There is strand of plant and physical spec ies only found in Cuba. In fact, 22 percent of its total welkin is restricted for conservation of the natural environment. It tastes large plantations of sugarcane, mines, and advanced treat production plants. However, the political relation controls 90 percent of the factors of production. The state runs and ope judge more or less of the flyings and employs 78 percent of the childbed force with the hidden sector dismally at 22 percent as per 2006 statistics 4 . clear-sighted into Cuba for a private company the fuddled has to pay the government, which in turn pays the employees. This whitethorn not be favorable for any business because there will be no motive of the wear out force. A firm may face moil gainsays venturing into Cuba because the workers are under the weather paid, and are not represented by the trade union. The sightly monthly profit is 19 US dollars, which is relatively utter to expect a large end product from them. The transparency international survey of 2008, graded Cuba as the 67 th virtually corrupt in the world. The putrescence erudition index (CPI) showed that Cuba scored 4.3 which rates from zero (senior high schoolly corrupt) to 10 (highly clean). Corruption is uncontrolled because the state owns all the resources and getting services from the government formaliseds one has to pay a bribe. The government lacks answerableness as there are no pressure groups in the country and degeneration is highly honest by top government official such as the military officials who enjoy favors that ordinary Cubans cannot have. A ministry to investigate decadence was set in 2001 to eliminate corruption and bring responsibility in the government, which is a good gesticulate towards the pure tone towards the right direction. Cuba has one of the utmost unemployment rates, and as of 2015, the rates were 2.40 percent. This is a very low function and this can be attributed by the firm grip of the government owning all t he factors of production. The government has established work camps, which employ most of the people 5 . If you are to venture into Cuba and the form of business you attentiveness to conduct is labor intensive then face for labor may be a challenge because the population is engaged. On the other side, high employment trains that there is money in the sparing, which increases demand for goods and services. This would ensure that the firm king grow the economy with high standards of living, proper medical services, and high levels of literacy levels, gain some big sales. sooner the give way of the USSR, the Cubans enjoyed a good lifespan with a vast. After it abandoned them, the country was plunged into crisis and general decline of the economy 6 . Since the collapse of the COMECON, Cuba has not united any barter block and has since concentrated on mental synthesis its communist policies. However, it trades with the MERCUSOR members such as Brazil. The sanctions compel by the United States and the European merger did hurt its economy. The US has enforced an embargo on Cuba, but things are looking good as president, Obama made his get down to Cuba and it is a step towards the right direction. The economy is recovering due to trade mingled with it and Canada, especially done its tourism sector. However, the government needs to do a lot, trim its force on the people, and give them freedom.