Sunday, March 30, 2014

Is Cuba ready to open up to foreign investment?

http://www.bbc.com/news/world-latin-america-26807489

       Recently, Cuba's deputies approved a new law to help Cuba attract more than $2bn a year in investments and help treble economic growth to 5-7%. Officials have said the new law would offer foreign investors tax breaks and guarantees against expropriation. A British businessman said "The new law looks very promising as a strong incentive for foreign investment."
       Like we already discussed in class, one way to improve the standard of living is to attract more foreign direct investment. Cuba's new law is aimed at boosting their economy while preserving their independence and sovereignty.

       Now, university students in Taiwan have occupied the parliament to against the trade deals with China that will allow more investment into Taiwan by China as part of the ECFA FTA between China and Taiwan. I think trade can make both parties better off. It will stimulate Taiwan's business to be more competitive. 

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