US Trade Embargo to Cuba Essay

US Trade Embargo to Cuba Essay

The trade embargo is referred to as the governmental order for restricting the trade of certain products or all of the goods completely with the foreign country. This trade embargo is executed by one country to another country for preventing the local citizens from involving in international trade that raises the imports of the company and disturbs its trade balance (González, 2015). There exist some of the main challenges that ascend from the similar because there exists no country that is fully independent, so there is only one manner by which the economies fulfill their needs and grow is through involvement in the foreign trade practice. When the nations produce more merchandise, the business gets an advantage from the practice of economies of scale in this their cost of production reduces, and as a result, their profit margin raises (Cetim, 2019).

Employment opportunities are also formed, and this raises the level of the national income (NI) along with the country gross domestic product (GDP) level. By high income and GDP, the balance of payment improves, and this assists international trade. The US government through embargo published the Cuban government that imposes a negative impact on Cuba economic growth (Fabry, 2015).

The repercussions of the embargo on Cuba

Loss of foreign returns:

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The United States is considered the world most developed and leading economies. Global countries endeavour to maintain their trade associations with the United States because of high economic benefits. Since the foundation of an embargo, the reports presented by the office shows that the nation of Cuba has a high-income value of approximately USD 70 billion (Cetim, 2019). Few of the losses in the earnings are the result of the embargo of trade that is imposed by the US to Cube that restricts the company export of the products like sugar and Nickel.

The financial restrictions:

Due to the financial constraints, the Cube is not able to obtain and borrow any financial assistance or aid from the United States. While the other nations borrow financial assistance from the US when they require high capital investment for intensive projects and infrastructural development. So, this trade embargo limited Cube numerous sectors of development like industrial, transport, construction and agriculture that impose a negative impact on Cube economic growth (Piccone & Miller, 2016).

Incentive emigration:

Because of it, the Cube is not able to get a talented workforce and educator of the US that affect their business as well as the education sector.

Limited access to technologies:

It is seen that the United States invents most of the technologies. The embargo restricts the corporations that are manufacturing the efficient technologies to export their technology to Cube which effects the efficiency of the Cuban companies and them to continually rely on the traditional methods of the products that increase the wastage and don’t maximize the utility. So, if the trade war between the US and Cuba will not end in future there exist a high chance that the cube will not experience the required or expected level of growth as the other nations of the world (Nandagopal, 2018).


It is concluded that this trade embargo is unfavourable for Cube. It affects Cube citizens and business practices highly. Few of the negative effects, mainly the social implications impose negative effects on citizens, for example, the concern for the food, shelter, improving the education and the health care system. So, the end of the trade embargo will promote the development that contributes highly toward the economic prosperity of Cuba nation.


Cetim. (2019). The effects of the US embargo against Cuba and the reasons for the urgent need to lift it. Retrieved from

Fabry, M. (2015). The U.S. Trade Embargo on Cuba Just Hit 55 Years. Retrieved from The Time:

González, E. J. (2015). Cuban Exiles on the Trade Embargo: Interviews. McFarland.

Nandagopal, S. (2018). America First – Trigger of Trade Wars. SSRN Electronic Journal. doi:10.2139/ssrn.3169146

Piccone, T., & Miller, A. (2016). Cuba, the U.S., and the concept of sovereignty: Toward a common vocabulary? Retrieved from Brookings:

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