This website uses cookies to ensure you have the best experience. Learn more

Fdi Risk Analysis Of Cuba

2365 words - 10 pages

Dianet Perez Garcia
Politics of International Investment
May 1, 2012

Foreign Direct Investment Risk Analysis on Cuba

Background: Cuba is an island in the Caribbean. La Habana is the capital of Cuba and its biggest city. Cuba is not an industrialized country and it mainly consists of farms. Cuba is the largest island in the Caribbean and the most populated with a population of over 11 million people. Cuba is a totalitarian communist country and has been ruled by Fidel Castro since 1959. Raul Castro has succeeded Fidel Castro and is now president. In 2008 Fidel Castro renounced his presidency after becoming ill and passed his presidency on to Raul Castro, his brother and Vice ...view middle of the document...

Although you may own a business at any time the government can expropriate you and is not responsible for indemnification. However, they are open to doing business with outside investors.
3. View of Political Leaders 4 2
of Foreign Firms
Raul Castro has allowed for more openness in recent year to foreign investment. Nevertheless, once again the government can seize your property at any time with out cause.
4. Major Political Events 5 7
In 2008 Fidel Castro, who was the dictator of Cuba since 1959, fell ill therefore gave up his power to his brother Raul Castro, much like a royal family would. There is no way to tell what will happen with Raul Castro, more specifically if something where to happen to him. Although, in 1988 Pope John Paul II visited Cuba and asked the government if they would allow its citizens to observe Catholic holidays like Christmas and be able to take a day off of work. As of April 27th, 2012 Cubans are now permitted to observe Good Friday, thanks to the request of Pope Benedict. In the future I do see Cuba being in major chaos do to the lack of plans they have following Raul Castro’s presidency.
5. Democracy 7 5
Cuba has no democracy, there is one central power and it is Raul Castro. All property in Cuba is owned by government. There is no freedom of speech being that TV, Radio and all other media outlets are owned and control by government.
6. Tension with US 5 3
Currently Cuba has some tension with US due to the Cuban Embargo. The US refuses to trade with Cuba because they are a member of and follow regulations of ILO (International Labor Org.). ILO regulations specify that when an employer receives payment for a product produced by their employees they must pay their employees directly and accordingly, however if a company exports a product from Cuba they pay the government and the government then pay the employees, it is up to the government’s discretion to decide what to pay the employees. In Cuba’s case they end up being underpaid. Also US citizens are not allowed to visit Cuba unless, they have family in Cuba, are travelling for religious reasons, journalist, work or as a student. The tensions have lessened since Obama decided to open communications with Cuba however it is still not safe to travel.
7. Support for Government 7 4
There is little to no support for Cuban government. There are currently political prisoners and human rights movements that are not legally recognized by the government. Also Cuba has government agencies similar to KGB of Soviet Union, which strictly investigates and under covers people opposed to government, this they refer to as security of state. This is something I am hopeful will change followed by more freedom for Cuban citizens.
8. Influence of Anti-Business 5 3
The government allows foreign business but has full...

Other Papers Like Fdi Risk Analysis of Cuba

Doing Business in China Essay

554 words - 3 pages help FDI gaining more knowledge about the target market and thus can lower the risk of failure investment. Moreover, being insensitive to Chinese culture, social norms is also one of the major factor that lead to failure investment for FDI. I suggest that the China government can hold some forums or talks introducing the culture of China and the difference between western and Chinese culture. Secondly, lacking of networking and connections in

Foreign Direct Investments Essay

1176 words - 5 pages relevant in understanding Indian FDI, and hence are not truly general forces that underlie FDI. The only truly general force is the inexorable push of capital to seek markets, whether through exports or when conditions at home put a brake on accumulation and condition abroad permit its continuation. Kulwinder Singh38 (2005) in his study “Foreign Direct Investment in India: A Critical analysis of FDI from 1991-2005” explores the uneven beginnings

Foreign Direct Investment

4633 words - 19 pages grounds such as commitment to hold the market or to protect the initial investment, and investigation seeks how to implement the decision. UNCTAD’S FDI Performance Index The United Nations Conference on Trade and Development (UNCTAD). conducted analysis to provide truer measures of the performance of the countries in attracting FDI. First, they created the FDI Performance Index by calculating the ratio between each countries' share in global

Are You Ready to Have Fdi Overseas?—a Dilemma Question for Emerging Economy Multinational Enterprises.Doc

2634 words - 11 pages enter foreign market. By doing this, the analysis of external environment is crucial to find out where the opportunity comes from, either from industry or institution. Above all, when we use the “5W” framework to analyse the EE MNE’s outward FDI, we may have both internal and external approaches. Only when the objective, the capabilities and the external environment can match, that’s the best opportunity for outward FDI. Reference

Fdi vs Fii

1471 words - 6 pages FDI vs FII Both FDI and FII are related to investment in a foreign country. FDI or Foreign Direct Investment is an investment that a parent company makes in a foreign country. On the contrary, FII or Foreign Institutional Investor is an investment made by an investor in the markets of a foreign nation. In FII, the companies only need to get registered in the stock exchange to make investments. But FDI is quite different from it as they invest

Abcder

2248 words - 9 pages | France | 42,628 | Mexico | 39,352 | Brazil | 36,717 | (Bureau of Economic Analysis, 2003) List of ten largest recipient country of US FDI in year 2005 Country | US FDI (millions of dollars) | United Kingdom | 351,513 | Netherlands | 240,205 | Canada | 231,836 | Bermuda | 113,222 | Switzerland | 100,692 | Germany | 100,473 | United kingdom islands, Caribbean | 83,164 | Japan | 81,175 | Luxembourg | 79,937

Trends In Foreign Direct Investments

1967 words - 8 pages impact of volatility in FDI flows, and hence makes the analysis much less dependent on the particular time period chosen. As illustrated in Chart 3, Australia has the highest share of the FDI stock in East Asia excluding China and it shows no sign of declining over time. Also, while East Asia’s FDI stock has increased significantly as a proportion of GDP between 1980 and 1996 (from around 5 per cent to 16 per cent), Australia’s stock has risen by

Fdi Develop Country

879 words - 4 pages investment are better spent on improving local infrastructure, the supply of information to investors, and education and training that benefits foreign and local firms alike. Developed countries should back only FDI that promotes the economic welfare of developing country hosts. Most national political risk insurance agencies do not screen projects to eliminate those that require trade protection. Such FDI hurts rather than helps hosts countries

Effect of Fdi on Indian Insurance Sector

1828 words - 8 pages they enter the sector and this also protect the company from the risk of takeover. This research will also consider the significance of presence of FDI in an industry or organization. Lloyd, P. (1996) suggests that FDI provides capital to form strong infrastructure in terms of expansion of business, distribution network etc. FDI facilitates the organisation to use advanced technology to provide quality service to customer. FDI has helped the

Edi vs. Export

2064 words - 9 pages Multinational Enterprises: Export vs. FDI Musawar Bajwa Manhattan Institute of Management Abstract There are two main options for companies to serve foreign markets: exports and foreign direct investment (FDI). Based on the Helpman, Melitz and Yeaple (2004) model for multiple host countries this paper derives a clear theoretical prediction for the decision between both strategies. The empirical evidence indicates

Surfer Dude Duds Inc

2538 words - 11 pages projects and significant expansions of existing projects are included. fDi Markets is the most authoritative source of intelligence on real investment in the global economy and the only source of greenfield investment data that covers all countries and industries worldwide. Retail projects have been excluded from this analysis but are tracked by fDi Markets. The data presented includes FDI projects that have either been announced or opened by a company

Related Essays

Risk And Option Analysis Of Proposed Venture

1117 words - 5 pages Memorandum: ------------------------------------------------- Subject : Risk and Option Analysis of Proposed Venture Introduction With reference to the company’s new announced project about exploring the meeting market of Country A, we have some points which I think would be useful to consider before undertaking the project. Background: Rephrasing the whole project definition and scope as you provided in the annual

The Economic And Risk Analysis Division Of The Sec

1120 words - 5 pages Nichole Schweitzer Professor Mathews ACCT 473 April 13, 2016 The Division of Economic and Risk Analysis: What Do They Do? The Division of Economic and Risk Analysis (DERA) is an integral part of the Securities Exchange Commission as it interacts with every other office and division in the SEC. In this paper, I will be discussing the role of DERA within the SEC, how it was formed, the multiple offices within DERA, and a program enacted by

Investment Essay

1088 words - 5 pages and the other is at the micro level. Again at the macro-level, we have capital market theory, Dynamic macroeconomic theory, FDI theories based onexchange rates, FDI theories based on economic geography, gravity approach to FDI and FDItheories based on institutional analysis. At the micro-level, we have the theories likeExistence of firm specific advantages (Hymer), FDI and oligopolistic markets, Theory ofinternalization, and Electic FDI theory

Written Analysis

1309 words - 6 pages Cuba & Kathy Engle WRITTEN ANALYSIS AND COMMUNICATION – I Assignment No. 1 A Report submitted to Instructor: Prof. Vijaya Sherry Academic Associate: Diti Rajesh Shah On 03-07-2010 By Arunkumar B, Section-E [pic] INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD LETTER OF TRANSMITTAL To: Ms. Kathy Engle, Junior Executive Director, LEADER Richard Ivey School of Business University of Western Ontario London From: Arunkumar B, IIM