presentation 2 cuba

29
Country specific business Country specific business analysis of Cuba and India analysis of Cuba and India By, By, T.Deepthi(5133) T.Deepthi(5133) Manish( Manish(

Upload: deepthi-tammannagari

Post on 10-Apr-2018

220 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 1/29

Country specific businessCountry specific business

analysis of Cuba and Indiaanalysis of Cuba and India

By,By,

T.Deepthi(5133)T.Deepthi(5133)

Manish(Manish(

Page 2: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 2/29

Republica de CubaRepublica de Cuba

Page 3: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 3/29

Page 4: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 4/29

DemographyDemography

Population: With a population of over 11 million people,Population: With a population of over 11 million people,Cuba is one of the most populous islands of theCuba is one of the most populous islands of theCaribbean.Caribbean.

In terms of ethnicity, about 51 percent of the CubanIn terms of ethnicity, about 51 percent of the Cuban

population is mulatto, 37 percent is white, 11 percent population is mulatto, 37 percent is white, 11 percent black and one percent Chinese.black and one percent Chinese.  At least 70 percent of the population lives in urban areas At least 70 percent of the population lives in urban areas

and the other 30 percent is located in the rural areas of and the other 30 percent is located in the rural areas of the country.the country.

The official language is Spanish.The official language is Spanish. Religions:Religions:

85%85%-- Roman CatholicRoman Catholic Protestants, Jehovah'sProtestants, Jehovah'sWitnesses, Jews, and Santeria are also representedWitnesses, Jews, and Santeria are also represented

Page 5: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 5/29

DemographicsDemographics

Cuba IndiaCuba IndiaPopulation: 11,451,652 (JulyPopulation: 11,451,652 (July2009 est.) Population growth rate: 2009 est.) Population growth rate: 0.233%0.233%

urban population:urban population: 76% of total76% of totalpopulation (2008)population (2008)

rate of urbanization:rate of urbanization: 0% annual rate0% annual rateof change (2005of change (2005--10 est.)10 est.)

Population: 1,156,897,766Population: 1,156,897,766

Population growth rate: Population growth rate:  1.407%1.407%

Urban population: 29% of totalUrban population: 29% of totalpopulationpopulation

Rate of urbanization: 2.4% annual rateRate of urbanization: 2.4% annual rateof changeof change

Page 6: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 6/29

Climate: The climate in Cuba is similar toClimate: The climate in Cuba is similar tothat of the Eastern Caribbean islands. Thethat of the Eastern Caribbean islands. Therainy season is from May to October. Therainy season is from May to October. The

island lies in the path of hurricanes andisland lies in the path of hurricanes andduring the rainy season especially fromduring the rainy season especially fromJune, the island is subjected to hurricaneJune, the island is subjected to hurricaneactivity. The dry season is from Novemberactivity. The dry season is from November

to April.to April.

Page 7: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 7/29

DemographyDemography Age structure: Age structure:00--14 years:14 years: 18.3% (male18.3% (male1,077,745/female1,077,745/female

1,020,393)1,020,393)1515--64 years:64 years: 70.4% (male70.4% (male

4,035,691/female4,035,691/female

4,030,103)4,030,103)65 years and over:65 years and over: 11.2% (male11.2% (male

584,478/female 703,242)584,478/female 703,242)

(2009 est.)(2009 est.)

Cubas youth dependency ratio is lowCubas youth dependency ratio is lowbecause of migration and low birth rates.because of migration and low birth rates.The elderly dependency ratio is high asThe elderly dependency ratio is high aspeople live longer.people live longer.

 Age structure: Age structure:00--14 years: 30.5% (male14 years: 30.5% (male187,197,389/female 165,285,592)187,197,389/female 165,285,592)

1515--64 years: 64.3% (male64 years: 64.3% (male384,131,994/female 359,795,835)384,131,994/female 359,795,835)

65 years and over: 5.2% (male65 years and over: 5.2% (male

28,816,115/female 31,670,841)28,816,115/female 31,670,841)

Page 8: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 8/29

GDPGDP -- real growth rate:real growth rate: 1% (2009)1% (2009)

4.3% (2008)4.3% (2008)7.3% (2007 )7.3% (2007 )

GDP GDP -- per capita (PPP): $4450per capita (PPP): $4450

GDP GDP -- composition by sector: composition by sector: 

 Agriculture: 6% Agriculture: 6%

Industry: 42.8%Industry: 42.8%

Services: 51.2%Services: 51.2%

GDPGDP -- real growth rate:real growth rate: 7.4%7.4%

GDP GDP -- per capita (PPP): $3,100per capita (PPP): $3,100

GDP GDP -- composition by sector: composition by sector: 

 Agriculture: 17% Agriculture: 17%Industry: 28.2%Industry: 28.2%

Services: 54.9%Services: 54.9%

Page 9: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 9/29

Cubas income per capita in 2007 (current U.S. dollars)Cubas income per capita in 2007 (current U.S. dollars)amounted to $4,641.amounted to $4,641. This qualifies Cuba as an upperThis qualifies Cuba as an upper--middlemiddle--income countryincome country

according to the World Banks classification.according to the World Banks classification. Economic growth slowed from 7.0 percent in 2007 to 4.3Economic growth slowed from 7.0 percent in 2007 to 4.3

percent in 2008 and was expected to dip below 4percent in 2008 and was expected to dip below 4percent in 2009. Cuba achieved strong GDP growth inpercent in 2009. Cuba achieved strong GDP growth inthe 2005the 2005 2007 period, averaging 10.2 percent due to2007 period, averaging 10.2 percent due tomajor new trade agreements, investment commitments,major new trade agreements, investment commitments,and credit lines from Venezuela and China provided aand credit lines from Venezuela and China provided asignificant boost to import capacity. The slowing growthsignificant boost to import capacity. The slowing growth

reflects the effects of the global crisis. Declines in globalreflects the effects of the global crisis. Declines in globalnickel prices, demand for tourism, and export of healthnickel prices, demand for tourism, and export of healthand educational services are driving the economicand educational services are driving the economicslowdown.slowdown.

Page 10: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 10/29

Cuba's EconomyCuba's Economy

Cuba has a dual economy. The socialist peso economy applies to most Cuba has a dual economy. The socialist peso economy applies to most Cubans, providing them with free education, free health care, universalCubans, providing them with free education, free health care, universalemployment, unemployment compensation, disability and retirement employment, unemployment compensation, disability and retirement 

benefits and the basis necessities of life: food, housing, utilities andbenefits and the basis necessities of life: food, housing, utilities andsome entertainment at very low cost. The freesome entertainment at very low cost. The free--market dollarizedmarket dollarizedeconomy operates in the tourist, international and export sectors, andeconomy operates in the tourist, international and export sectors, andsubstantially sustains the socialist economy.substantially sustains the socialist economy.

Page 11: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 11/29

ECONOMIC STRUCTUREECONOMIC STRUCTURE Cuba has a strong service sector and, like manyCuba has a strong service sector and, like many

developing countries, exhibits low productivity indeveloping countries, exhibits low productivity inagriculture. Nearly 20 percent of the labor force works inagriculture. Nearly 20 percent of the labor force works inthe agricultural sector yet it accounted for only 3.6the agricultural sector yet it accounted for only 3.6percent of value added in GDP in 2006. Agriculturalpercent of value added in GDP in 2006. Agriculturalvalue added in GDP has been on the decline in the fivevalue added in GDP has been on the decline in the fiveyears leading to 2006, with an average growth rate of years leading to 2006, with an average growth rate of --12.7 percent. The service sector is the most productive,12.7 percent. The service sector is the most productive,accounting for 59.4 percent of all employment andaccounting for 59.4 percent of all employment and

contributing 77.3 percent of GDP in 2006. The size of thecontributing 77.3 percent of GDP in 2006. The size of theCuban service sector is larger than those in allCuban service sector is larger than those in allcomparator economies.comparator economies.

Page 12: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 12/29

TourismTourism

Tourism is the major sector in the Cuban economy. This came about Tourism is the major sector in the Cuban economy. This came about after the country was forced to restructure its economy followingafter the country was forced to restructure its economy followingthe collapse of the Soviet Union and the dismantling of Communismthe collapse of the Soviet Union and the dismantling of Communismboth of which impacted negatively on the economy. Previouslyboth of which impacted negatively on the economy. Previouslydominated by sugar, the economy was opened up to foreigndominated by sugar, the economy was opened up to foreigninvestment.investment.

 Among the investors were a number of hotel companies which Among the investors were a number of hotel companies whichentered joint venture arrangements with the Government toentered joint venture arrangements with the Government toconstruct hotels. Today Cuba welcomes in excess of two millionconstruct hotels. Today Cuba welcomes in excess of two millionvisitors and tourism accounts for over 60 percent of Gross Domesticvisitors and tourism accounts for over 60 percent of Gross DomesticProduct. The majority of visitors to the island originate fromProduct. The majority of visitors to the island originate fromCanada, followed Mexico, Europe (mainly Spain), Latin America andCanada, followed Mexico, Europe (mainly Spain), Latin America and

the Caribbean.the Caribbean.

Page 13: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 13/29

 Agriculture Agriculture

This sector was the mainstay of the economy for over 30 yearsThis sector was the mainstay of the economy for over 30 yearsfollowing the Cuban revolution of 1959. The principal agriculturalfollowing the Cuban revolution of 1959. The principal agriculturalactivity was sugar production as Cuba had a guaranteed market inactivity was sugar production as Cuba had a guaranteed market inEastern Europe for sugar, the main export outlet for the commodity.Eastern Europe for sugar, the main export outlet for the commodity.However, with the loss of Eastern Europe following the politicalHowever, with the loss of Eastern Europe following the politicalchanges which resulted in those countries attaining theirchanges which resulted in those countries attaining theirindependence from the Soviet Union, the industry experiencedindependence from the Soviet Union, the industry experienceddeclines. Although production is lower, Cuba is still a majordeclines. Although production is lower, Cuba is still a majorproducer of sugar, and it exports the commodity to some markets inproducer of sugar, and it exports the commodity to some markets inEurope and to China. It is involved in a deal with Venezuela whereEurope and to China. It is involved in a deal with Venezuela whereCuban sugar is exchanged for oil from that country. Nonetheless,Cuban sugar is exchanged for oil from that country. Nonetheless,the Cuban government is looking to attract foreign investment inthe Cuban government is looking to attract foreign investment in

the sugar industry in an attempt to lift production.the sugar industry in an attempt to lift production.

Page 14: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 14/29

NickelNickel  Along with tourism, nickel output has boost economic growth to Along with tourism, nickel output has boost economic growth to

around 11 percent and 12 percent respectively in 2005 and in 2006.around 11 percent and 12 percent respectively in 2005 and in 2006. Venezuela and China have invested heavily in this segment of the Venezuela and China have invested heavily in this segment of theCuban economy and Cuba is now the worlds fifth largest producerCuban economy and Cuba is now the worlds fifth largest producerof nickel and cobalt.of nickel and cobalt.

ManufacturingManufacturing This is another segment of the Cuban economy which hasThis is another segment of the Cuban economy which has

contributed to the economic recovery following the difficult years of contributed to the economic recovery following the difficult years of the early 1990s. The production of food and beverage, chemicals,the early 1990s. The production of food and beverage, chemicals,

cement, tobacco, clothing and textiles, and pharmaceuticals, arecement, tobacco, clothing and textiles, and pharmaceuticals, aresome of the principal goods manufactured by the Caribbean island.some of the principal goods manufactured by the Caribbean island.The country has also been exporting these items to markets inThe country has also been exporting these items to markets inEurope, Canada, Latin America and China.Europe, Canada, Latin America and China.

ConstructionConstruction Construction activity in Cuba continues to be robust, according toConstruction activity in Cuba continues to be robust, according to

the 2006 Economic Report as outlined by the Government. Foreignthe 2006 Economic Report as outlined by the Government. Foreigninvestment in the tourism sector has meant a wave of new hotelinvestment in the tourism sector has meant a wave of new hotelconstruction to boost the islands hotel room stock.construction to boost the islands hotel room stock.

Page 15: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 15/29

BankingBanking The Central Bank of Cuba is at the apex of the banking system in the country. First established in 1948 as the National BankThe Central Bank of Cuba is at the apex of the banking system in the country. First established in 1948 as the National Bank

of Cuba, this institution was reorganized on at least four occasions, the last being in 1997 when it became the Central Bank.of Cuba, this institution was reorganized on at least four occasions, the last being in 1997 when it became the Central Bank.Its President is a member of the Council of Ministers of Cuba. The financial system is made up of eight commercial banks, anIts President is a member of the Council of Ministers of Cuba. The financial system is made up of eight commercial banks, aninvestment bank, and noninvestment bank, and non--bank financial institutions. The Havana Investment Bank is registered in London. There are nobank financial institutions. The Havana Investment Bank is registered in London. There are nostock exchanges. The Cuban Central Bank performs traditional central banking operations issuing currencies, managing thestock exchanges. The Cuban Central Bank performs traditional central banking operations issuing currencies, managing thefinancial system and the economy, specifying monetary policy, and acting as lender of last resort.financial system and the economy, specifying monetary policy, and acting as lender of last resort.

Page 16: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 16/29

Labor Skills:Labor Skills:

Cuba have highly qualified and educated populationCuba have highly qualified and educated populationas one of the resources the country can rely onas one of the resources the country can rely on

during the future transition towards a market during the future transition towards a market economy.economy.

Labor force: Labor force: 

4.3 million workers4.3 million workers

Page 17: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 17/29

Cuban CustomsCuban CustomsCuba is possibly best known around the world for 3 things: communism;Cuba is possibly best known around the world for 3 things: communism;sport (boxing and baseball) and music. However, Cuba really does havesport (boxing and baseball) and music. However, Cuba really does havemuch more of a traditionmuch more of a tradition--based custom than these. For example, food isbased custom than these. For example, food isimportant to Cubans; arts (both still and moving) are important to Cubansimportant to Cubans; arts (both still and moving) are important to Cubans

and fiesta time is important to Cubans.and fiesta time is important to Cubans. Aside from those more mainstream cultural norms that you may see in Cuba, Aside from those more mainstream cultural norms that you may see in Cuba,

Cuba also has a few more select customs. A traditional Cuban weddingCuba also has a few more select customs. A traditional Cuban weddingwould be among these more select cultural norms.would be among these more select cultural norms.

Womens role in the society:Womens role in the society:

66.1% of Cuban professionals and intermediate66.1% of Cuban professionals and intermediate--level technicians arelevel technicians arewomen .In 1953, women constituted 19.2% of the work force and nowwomen .In 1953, women constituted 19.2% of the work force and nowrepresent 43.6% of public employees.represent 43.6% of public employees.

Page 18: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 18/29

MeetingsMeetings

business meetings should be scheduled at least 1 week in advance.business meetings should be scheduled at least 1 week in advance.

 You will be expected to be on time for business meetings, but it is a long You will be expected to be on time for business meetings, but it is a long--standing tradition forstanding tradition foryour Cuban hosts to keep you waiting for up to 1 hour. Do not be insulted; this is just standardyour Cuban hosts to keep you waiting for up to 1 hour. Do not be insulted; this is just standardpractice.practice.

Before the meeting begins, engage in some small talk.Before the meeting begins, engage in some small talk. FamilyFamily is important in Cuba, and theis important in Cuba, and thesubject is a good conversation starter.subject is a good conversation starter.Dress and AppearanceDress and Appearance

Men should wear longMen should wear long--sleeved shirts to meetings, but a tie and jacket are not necessary. Women maysleeved shirts to meetings, but a tie and jacket are not necessary. Women maywear dress slacks or a dress to meetings. Though the climate is hot and muggy, casual clothing is not wear dress slacks or a dress to meetings. Though the climate is hot and muggy, casual clothing is not acceptable for business functions.acceptable for business functions.

EntertainingEntertaining

Lunch is the main meal for business meetings and will last around 2 hours. Dinner is more formal andLunch is the main meal for business meetings and will last around 2 hours. Dinner is more formal andbusiness is not typically discussed.business is not typically discussed.

It is common practice for men to stand when a woman enters the room or leaves the table.It is common practice for men to stand when a woman enters the room or leaves the table.Drinking is a large part of the culture in Cuba, especially during business lunches.Drinking is a large part of the culture in Cuba, especially during business lunches.

Page 19: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 19/29

Politics and lawPolitics and lawCuba IndiaCuba India

Government type: Government type:  communist state.communist state.

current government assumed power bycurrent government assumed power byforce on January 1, 1959.force on January 1, 1959.

Independence:Independence: May 20, 1902.May 20, 1902.

Political partyPolitical party: Cuban Communist Party: Cuban Communist Party(PCC); only one party allowed.(PCC); only one party allowed.

Capital: Capital:  Capital Capital ----Ha va na  (p op . 2Ha va na  (p op . 2milli on).milli on).

 Administrative divisions:  Administrative divisions: 

 Administrative subdivisions: 14 provinces, Administrative subdivisions: 14 provinces,including the city of Havana, and oneincluding the city of Havana, and onespecial municipality.special municipality.

Government type: Government type: 

Federal republic; authoritarian primeFederal republic; authoritarian primeminister ruleminister rule

Independence: Independence:  15 August 194715 August 1947(from the UK)(from the UK)

Capital: Capital:  New DelhiNew Delhi

 Administrative divisions:  Administrative divisions: 

28 states and 7 union territories28 states and 7 union territories

Page 20: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 20/29

Political System:Political System: Cuba is a Communist country. That system wasCuba is a Communist country. That system wasinstalled following the 1959 Revolution which brought Dr. Fidelinstalled following the 1959 Revolution which brought Dr. Fidel

Castro Ruz to power.Castro Ruz to power. He has ruled Cuba since then, until he became ill in 2006. TheHe has ruled Cuba since then, until he became ill in 2006. The

country is a one party state with the Cuban Communist Party beingcountry is a one party state with the Cuban Communist Party beingthe only one of significance. The country is divided into14 provinces,the only one of significance. The country is divided into14 provinces,including the City of Havana and one special municipality, Isle of including the City of Havana and one special municipality, Isle of 

 Youth. Youth.

Cuba has had a tempestuous relationship with the United States.Cuba has had a tempestuous relationship with the United States.The USA has imposed an embargo which not only preventsThe USA has imposed an embargo which not only prevents

 Americans from trading and travelling to the island, but frowns on Americans from trading and travelling to the island, but frowns oncountries which have been doing so. From time to time the Unitedcountries which have been doing so. From time to time the UnitedStates had tightened the embargo and has gone so far byStates had tightened the embargo and has gone so far byimplementing what is known as the Helms Burton Act whichimplementing what is known as the Helms Burton Act whichthreatens to sanction countries doing business with Cuba.threatens to sanction countries doing business with Cuba.

Page 21: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 21/29

Cuba IndiaCuba India

The Communist Party is constitutionallyThe Communist Party is constitutionallyrecognized as Cuba's only legal politicalrecognized as Cuba's only legal politicalparty. The party monopolizes allparty. The party monopolizes allgovernment positions, inluding thegovernment positions, inluding theCouncil of State and judicial offices.Council of State and judicial offices.

Though not a formal requirement,Though not a formal requirement,party membership is a de factoparty membership is a de factoprerequisite for highprerequisite for high--level officiallevel officialpositions and professional advancement positions and professional advancement in most areas.in most areas.

 A small number of non A small number of non--party membersparty members

have been permitted by the controllinghave been permitted by the controllingCommunist authorities to serve in theCommunist authorities to serve in theNational Assembly.National Assembly.

. Citizens do not have the right to. Citizens do not have the right tochange the government.change the government.

India is the largest democracy in theIndia is the largest democracy in theworld. The constitution separates theworld. The constitution separates thepowers of the government into 3powers of the government into 3branches: legislative, executive, andbranches: legislative, executive, and

 judicial. judicial.

The initiative and responsibility forThe initiative and responsibility forexecutive leadership rests with the officeexecutive leadership rests with the officeof the prime minister, not with theof the prime minister, not with thepresident.president.

Neither of these offices is gained byNeither of these offices is gained bydirect popular vote. The president is thedirect popular vote. The president is the

head of state for a 5head of state for a 5--year term and isyear term and iselected by an electoral college composedelected by an electoral college composedof members of parliament and stateof members of parliament and statelegislatures.legislatures.

The president's role is so limited byThe president's role is so limited bythe constitution that he or she has rarethe constitution that he or she has rareopportunities to determine nationalopportunities to determine nationalpolicy.policy.

Page 22: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 22/29

TerrorismTerrorismCuba IndiaCuba India

USUS--Cuba relations have been sour sinceCuba relations have been sour sincethe 1959 Cuban communist revolution.the 1959 Cuban communist revolution.

 According to the State Department, Cuba According to the State Department, Cubaremains on the list because it hasremains on the list because it has"publicly opposed" the U.S."publicly opposed" the U.S.--led war onled war onterror and maintains friendlyterror and maintains friendly

relationships with other state sponsors of relationships with other state sponsors of terrorism, like Iran. Cuba in the past hasterrorism, like Iran. Cuba in the past hasprovided shelter .and hosted members of provided shelter .and hosted members of terrorist organizations.terrorist organizations.

Terrorism in India is primarilyTerrorism in India is primarilyattributable to religious communities andattributable to religious communities andNaxalite radical movement.Naxalite radical movement.

The regions with long term terrorist The regions with long term terrorist activities today are Jammu and Kashmir,activities today are Jammu and Kashmir,

Mumbai, Central India (Naxalism) andMumbai, Central India (Naxalism) andSeven Sister States .Seven Sister States .

Page 23: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 23/29

Official exchange rate:Official exchange rate:

U.S. $1 = 0.93 Cuban convertible pesos.U.S. $1 = 0.93 Cuban convertible pesos.

Cuba has two currencies in circulation: the peso (CUP), and theCuba has two currencies in circulation: the peso (CUP), and theconvertible peso (CUC), both of which are fixed by the government.convertible peso (CUC), both of which are fixed by the government.

Since November 2004, the U.S. dollar has not been accepted forSince November 2004, the U.S. dollar has not been accepted forcommercial transactions. U.S.commercial transactions. U.S.--issued debit and credit cards also are not issued debit and credit cards also are not accepted in Cuba. The Cuban government requires the use of accepted in Cuba. The Cuban government requires the use of convertible Cuban pesos or nonconvertible Cuban pesos or non--convertible Cuban pesos for allconvertible Cuban pesos for alltransactions .transactions .

1 Cuban Peso (CUP)=44.275Indian Rupee (INR)1 Cuban Peso (CUP)=44.275Indian Rupee (INR)

Page 24: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 24/29

Business with Cuba?Business with Cuba?

With an economic, social, fair andWith an economic, social, fair andhuman policy, the small island of thehuman policy, the small island of theCaribbean sea shows a better worldCaribbean sea shows a better worldis possible.is possible.

Page 25: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 25/29

 A large Cuban trade delegation has arrived A large Cuban trade delegation has arrivedin India looking for cooperation in cars,in India looking for cooperation in cars,pharmaceuticals, tourism and more. Of pharmaceuticals, tourism and more. Of course, armed with its famous rum andcourse, armed with its famous rum andcigars, the hard line communist state that cigars, the hard line communist state that is gradually opening up its economy tois gradually opening up its economy to

outsiders also has a lot on offeroutsiders also has a lot on offer

Page 26: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 26/29

PRIORITY SECTOR OPEN TOPRIORITY SECTOR OPEN TONEW FOREIGN INVESTMENTNEW FOREIGN INVESTMENT

Oil and GasOil and Gas

Agriculture (Including sugar)Agriculture (Including sugar)

Bank ing and f inanceBank ing and f inance TourismTourism

TelecommunicationTelecommunication

Heavy IndustryHeavy Industry MiningMining

Brewing and R umBrewing and R um

TobaccoTobacco

Real estateReal estate

Software developmentSoftware development BiotechnologyBiotechnology

Investment f undsInvestment f unds

Page 27: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 27/29

While there was a period of time when CubaWhile there was a period of time when Cubawelcomed foreign business, that welcome haswelcomed foreign business, that welcome hascooled in the past few yearscooled in the past few years -- and there's muchand there's much

more need formore need for social worksocial work than there is for newthan there is for newforeign business. Observers have noted that foreign business. Observers have noted that small business is discouraged as "unneeded",small business is discouraged as "unneeded",while the government still welcomes bigwhile the government still welcomes big

businesses with huge influxes of cash to invest.businesses with huge influxes of cash to invest.

Page 28: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 28/29

The law regarding direct foreign investment isThe law regarding direct foreign investment isrelatively flexible and, in theory, it allows investment relatively flexible and, in theory, it allows investment in all economical sectors. However, the government in all economical sectors. However, the government favours and offers more advantages to investmentsfavours and offers more advantages to investmentsthat can bring advanced technology, open newthat can bring advanced technology, open newmarkets or provide an amount of capital which Cubamarkets or provide an amount of capital which Cubacannot bring in alone, allowing the country to havecannot bring in alone, allowing the country to havethe freewill of substituting imports.the freewill of substituting imports.

Page 29: Presentation 2 Cuba

8/8/2019 Presentation 2 Cuba

http://slidepdf.com/reader/full/presentation-2-cuba 29/29

Government measures to Government measures to motivate or restrict FDImotivate or restrict FDI

Free industrial trade zones have been established inFree industrial trade zones have been established inorder to attract foreign investors (for example:order to attract foreign investors (for example:Havana in Bond, the Wajav zone or the port zone of Havana in Bond, the Wajav zone or the port zone of Mariel). They are exempt of income tax on profits asMariel). They are exempt of income tax on profits aswell as labor tax, also exempt of customs duty andwell as labor tax, also exempt of customs duty andany other additional duties on merchandisesany other additional duties on merchandisesintroduced in the free zone. The tax exemption isintroduced in the free zone. The tax exemption isvalid for 12 years. The following five years, thevalid for 12 years. The following five years, the

company is taxed only 50%. For commercial activitiescompany is taxed only 50%. For commercial activitiesand services, the exemption period is extended for 5and services, the exemption period is extended for 5years.years.