Sale of John Deere Tractors in Cuba

Jing Liang

IBM 414

August 11th, 2015

Sale of John Deere Tractors in Cuba

Cuba is a country with a dwindling population of about 11.2 million people. The bulk of the population is between the ages of fifteen and sixty-four years. The population is divided equally between the male and female genders. Cuba’s economy grew to 4.7% in 2014 from 1.3% in the year before. The Cuban population is predominantly low-income earners. These people earn less than 20 USD monthly (Crooker & Pavlovic 37). The service industry in Cuba contributes highest to the gross national product while agriculture chips in at a distant third.

The state controls a significant share of the Cuban economy. The government has majority stakes in sectors such as service, transport, telecommunication, healthcare, education and banking. It is therefore very difficult for investors to inject capital into the Cuban economy due to bureaucracy. Although the post-Fidel economy is trying to move away from such restriction and encourage private sector growth, Cuba is yet to see a significant change in that direction.

Imports into Cuba went down in 2014. The country is predominantly agricultural. However, the country has other export products such as nickel and medical products. The agricultural product such as sugar, coffee, and citrus dominate the export market in Cuba (Crooker & Pavlovic 33). The Caribbean country has more potential in agriculture in the form of mangoes, pineapples, and ginger. If the agricultural sector could be commercialized fully, the state could make great strides in economic growth.

Cuba’s non-commercialized agricultural sector offers an excellent opportunity for those in the machinery industry. An introduction of machinery into the production of sugar, coffee, and fruits presents the chance to increase productivity and efficiency (Mendez 16). Increased production translates to more exports and economic growth. Use of machinery in production also provides the opportunity to improve quality. The use of machinery lowers the cost of production due to a decrease in the amount of personnel. Low production cost translates to high profits. Such factors make Cuba a promising market for John Deere range of tractors.