Cuba currently greatly restricts and                inhibits economic freedom, including private property rights and unregulated                    markets.   What does economic growth models predict for this country’s                future?

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter3: Global Business
Section3.4A: The Economic Outlook For Trade
Problem 1CC
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(Q#15)  The U.S. is gradually normalizing relations with Cuba.  As Cuba is currently a 
              poor country by global standards, there is great hope that it will come to 
              prosper in the coming decades.  Yet, Cuba currently greatly restricts and 
              inhibits economic freedom, including private property rights and unregulated     
              markets.   What does economic growth models predict for this country’s 
              future?  This country’s prospects will likely:

 (a)  be good, provided that the government continues to prevent private companies
        from setting high selling prices and low employee wages
 (b)  be poor, unless they can shift to a political and legal regime that supports robust 
        private sector activity, individual initiative and personal freedom

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