Chapter 6 case study.docx - Name : Tej Paul Singh Madonna...

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Name: Tej Paul SinghMadonna ID No: 253884Date of Submission: 12 / 03 /2019SummaryThis case study provides us with brief information as to how and what is required to start up abusiness set up in a Cuba based market. Cuba, as a capital city, is a challenging space forinvestment. It has all required facilities like high speed internet access, boutiques, travelagencies, banks, the Miramar Trade Centre – which is a home to international constructioncompanies, Russian oil companies, Canadian and European banks and traders. Despite ofhaving such facilities, the Caribbean land is yet a challenging stage for any business toflourish. Caribbean land was under communist rule and only recently it has been opened tomodern businesses. At present, American companies have begun to enter the market of Cuba.Since they are new into the market they expect that they can use techniques and skills fromthe companies that are already a part of Cuba market. These set ups have been hampered bythe government regulations and US sanctions related to international finance. There wereapproximately two hundred operating investment projects in Cuba, out of which sixty percentof businesses setup have closed because they were forced out by the government. SabastianBerger, a Dutch corporate lawyer, chief executive of Ceiba, who is investment include theMiramar Trade Centre and hotels stated that Cuba by far is one of the only place that requiresauthorisation of the highest government body for every direct investment, and is verydifferent as everything is owned by the state. Mr Berger’s partner, a Canadian lawyer askshim if business can be done in Cuba, to which he replies that yes businesses can be set up
here. But the only difference is that your state partner is your supplier, the employer of yourstaff, the buyer, the regulating authority and also the entity that taxes you. And added that is acomplicated place for a normal business transaction. He mentions a few examples like the

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