globe.jpgThe whole world definitely knows how mighty the United States is. Its currency is the major source of trade in numerous countries all over the world. There are also many nations who are dependent on them since they can help or even produce basic supplies people need, such as fuel and food.

However, there are trade bans. Under the law, American companies are not allowed to trade their products and services with some countries, such as North Korea and Cuba. These are countries in which the United States has differences with. Yet business still goes on.

How are American companies able to penetrate these banned markets?

The Cuba Embargo Loophole

Several years ago, America and Cuba had excellent ties until conflicts started to rise, and the Cuba Embargo was drafted. Policies have become stricter when it comes to travel, and worse, companies are not allowed to trade. However, this completely changed because of the loophole business owners have found in the agreement.

Cubans, despite earning a meager $13 per month, are still able to enjoy free health care and food. However, their home-grown products are never enough. Thus, they are dependent on America for them. Today there are already many imports that are currently found all over Cuba. The law passed by Congress in 2000 against Cuban trade didn’t place any prohibition on sale of food to Cuba. On the other hand, the Cuban government is making sure that they can actually make huge agricultural purchases in order to force the United States to allow mass tourism in their country.

Outsourcing to Korea

There are many reasons why U.S. companies are outsourcing their jobs to other countries, one of which is the very low labor cost. However, it’s surprising to note that there are actually some U.S. film companies who are able to send businesses in North Korea despite the trade ban.

Usually, U.S. companies outsource projects to South Koreans, who, in turn, will send some of them to North Koreans. Because there’s no clear U.S. policy about outsourcing and that Americans don’t really care who work on their projects as long as they’re excellent and they can own the copyright, business still continues in the Communist-run country.

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