AGB L302: LWEEK L4 LCASE LSTUDY LASSIGNMENT
LWITH LCORRECT LANSWERS L2025
List L4 Lmajor Lpros Land L7 Lmajor Lcons Lassociated Lwith Lentering Lthe LCuban Lmarket L(40Tpoints)—
Nestlé's LIce LCream Lcase Lstudy. LExpand Lon Leach Lpros Land Lcons Lin Lyour Lown Lwords L(total L150
Lwords Lmin.) Le Lxplanation Lof Ladvantages Land Ldisadvantages Lof La Lmultinational Lcompany Lentering
Lin LCuba, Lknowledge Lof Lregions Land Lcountry L- LCORRECT LANSWER L-
CONS L- LCORRECT LANSWER L-
1. Joint Lventures Lwith Lthe LCuban Lgovernment Lwere Lonly Lapproved Lfor La Lfixed Ltime, Lthen Lthe
Linvestment Lt Lerms Lcould Lbe Lchanged Lby Lthe Lgovernment; LThe Lfact Lthat Lthe Lgovernment Lcan
Lchange Ltheir Linvestment Lte Lrms Lwith La Lcompany Lif Lthey Laren't Lin Ltheir Lfavor Lshould Lbe La
Ldeterrent.
2. The Llimited Lapproval Lperiod Land Lthreat Lof Lrenegotiation Llowered Lthe Lpotential Lnet Lpresent Lvalue
Lof Linve Lstment Lopportunities; LA Lforeign Lcompany Lwas Lonly Lgoing Lto Lbe Lable Lto Lmake Las Lmuch
Lmoney Las Lthe Lgover Lnment Lwould Llet Lthem Land Lif Lthe Lgovernment Lfelt Lthat Lthey Lweren't
Lmaking Lenough Lfrom Lthe Linvestment Lthen Lthey Lwould Lbe Lable Lto Lchange Lthe Lterms Lonce Lthe
Lperiod Lhad Lfinished.
3. The Llimited Lapproval Lperiod Lincentivized Lhigher Llevels Lof Ldebts; LHigher Llevel Lof Ldebts Lwill Lnot
Lpersuade Lf Loreign Lfirms Lto Linvest Lin LCuba Lwhen Lthey Lcould LinvestTtheir Lmoney Lelsewhere Land
Lmake Lmuch Lmore Lthan Lthey Lcould Lthere.
4. The Llimited Lapproval Lperiod Ldiscouraged Linvestment Ltowards Lthe Lend Lof Lthe Lapproval Lperiod;
5. Having Lto Ldeal Lwith LCuba's Ldual Lcurrency Lsystem; LCuba's Ldual Lcurrency Lsystem Lmakes Lit Ldifficult
Lto Lbala Lnce Ljust Lhow Lmuch Lyour Lproduct Lwill Lcost Land Lwho Lwill Lbe Lable Lto Lafford Lit.
6. Foreign Lfirms Lsell Lproducts Lin Lconvertible Lpesos L(CUCs) Lwhich Lare Lworth L25 Ltimes Lmore Lthan
Lthe LCuban Lpeso L(CUPs) Lwhich Lare Lgiven Lto Lthe LCubans Las Lpayment Lfor Lwork; LThis Ldisparity
Lbetween Lcurrencies Lmake Ls Lit Lalmost Limpossible Lfor La Llarge LpartTof Lthe LCuban Lmarket Lto Lbe Lable
Lto Lafford Lthese Lforeign Lgoods Lwhich Lforces Lthe Linvestors Lto Lmainly Ltarget Ltourists.
7. Difficulties Lfinding Lreliable Llocal Lsuppliers Lfor Linputs; LWithout Lhaving Lthe Lopportunity Lto Lsecure
Lyourself La Lreliable Lsupplier Lfor Linputs Lthat Lare Lnecessary Lfor Lthe Lproduction Lof Lthe Lproduct
Lyou'd Lhave Lto Limport Lt Lhem Lwhich Lwill Lcause Lyou Lto Llose Lmoney Lin Lturn.
LWITH LCORRECT LANSWERS L2025
List L4 Lmajor Lpros Land L7 Lmajor Lcons Lassociated Lwith Lentering Lthe LCuban Lmarket L(40Tpoints)—
Nestlé's LIce LCream Lcase Lstudy. LExpand Lon Leach Lpros Land Lcons Lin Lyour Lown Lwords L(total L150
Lwords Lmin.) Le Lxplanation Lof Ladvantages Land Ldisadvantages Lof La Lmultinational Lcompany Lentering
Lin LCuba, Lknowledge Lof Lregions Land Lcountry L- LCORRECT LANSWER L-
CONS L- LCORRECT LANSWER L-
1. Joint Lventures Lwith Lthe LCuban Lgovernment Lwere Lonly Lapproved Lfor La Lfixed Ltime, Lthen Lthe
Linvestment Lt Lerms Lcould Lbe Lchanged Lby Lthe Lgovernment; LThe Lfact Lthat Lthe Lgovernment Lcan
Lchange Ltheir Linvestment Lte Lrms Lwith La Lcompany Lif Lthey Laren't Lin Ltheir Lfavor Lshould Lbe La
Ldeterrent.
2. The Llimited Lapproval Lperiod Land Lthreat Lof Lrenegotiation Llowered Lthe Lpotential Lnet Lpresent Lvalue
Lof Linve Lstment Lopportunities; LA Lforeign Lcompany Lwas Lonly Lgoing Lto Lbe Lable Lto Lmake Las Lmuch
Lmoney Las Lthe Lgover Lnment Lwould Llet Lthem Land Lif Lthe Lgovernment Lfelt Lthat Lthey Lweren't
Lmaking Lenough Lfrom Lthe Linvestment Lthen Lthey Lwould Lbe Lable Lto Lchange Lthe Lterms Lonce Lthe
Lperiod Lhad Lfinished.
3. The Llimited Lapproval Lperiod Lincentivized Lhigher Llevels Lof Ldebts; LHigher Llevel Lof Ldebts Lwill Lnot
Lpersuade Lf Loreign Lfirms Lto Linvest Lin LCuba Lwhen Lthey Lcould LinvestTtheir Lmoney Lelsewhere Land
Lmake Lmuch Lmore Lthan Lthey Lcould Lthere.
4. The Llimited Lapproval Lperiod Ldiscouraged Linvestment Ltowards Lthe Lend Lof Lthe Lapproval Lperiod;
5. Having Lto Ldeal Lwith LCuba's Ldual Lcurrency Lsystem; LCuba's Ldual Lcurrency Lsystem Lmakes Lit Ldifficult
Lto Lbala Lnce Ljust Lhow Lmuch Lyour Lproduct Lwill Lcost Land Lwho Lwill Lbe Lable Lto Lafford Lit.
6. Foreign Lfirms Lsell Lproducts Lin Lconvertible Lpesos L(CUCs) Lwhich Lare Lworth L25 Ltimes Lmore Lthan
Lthe LCuban Lpeso L(CUPs) Lwhich Lare Lgiven Lto Lthe LCubans Las Lpayment Lfor Lwork; LThis Ldisparity
Lbetween Lcurrencies Lmake Ls Lit Lalmost Limpossible Lfor La Llarge LpartTof Lthe LCuban Lmarket Lto Lbe Lable
Lto Lafford Lthese Lforeign Lgoods Lwhich Lforces Lthe Linvestors Lto Lmainly Ltarget Ltourists.
7. Difficulties Lfinding Lreliable Llocal Lsuppliers Lfor Linputs; LWithout Lhaving Lthe Lopportunity Lto Lsecure
Lyourself La Lreliable Lsupplier Lfor Linputs Lthat Lare Lnecessary Lfor Lthe Lproduction Lof Lthe Lproduct
Lyou'd Lhave Lto Limport Lt Lhem Lwhich Lwill Lcause Lyou Lto Llose Lmoney Lin Lturn.
