Psychology Essays (UOP)

Span/110 Political and Economic Environment Comparison Paper

Political and Economic Environment Comparison Paper

Team B

Span/110

12/14/2015

Introduction

In Peru and Cuba, there are some similar and different economic factors that need to be addressed such as major industries, unemployment, currency, and trades. There are some political structures and notable politicians in these countries that are significant. Peru has one of the best economies around while Cuban economy is based on equality among all citizens.

Politics and Politician's

When it comes to Cuba's politics and Politian's the country certainly stands out for a few known reasons. This particular country is known as a communist state. This means Cuba is "a system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people." (Free-Dictionary, 2015) In 2008, Fidel Castro currently served as the president of the Council of State and Ministers. Raul Castro, Fidel's brother, has succeeded him as the chief of state, or as others know him as the president of Cuba. He also "personally chooses the membership of the Politburo, the select group that heads the party." (Cuba's Government, 2015) The second most important politician would be the vice president. This position was previously held by Raul Castro and is now in the hands of Miguel Díaz-Canel. This changed the aspect of the leadership roles that used to belong to what was called the "historical Generation" to the new one.

Peru's government is known as a democratic republic, much like the United States, it is broken down into three branches like the United States Government. "The President of the Republic and the 130 members of the government of Peru's Congress are elected every five years by a universal, secret and direct vote."(Peruvian Government, 2015) The current president who was voted for in 2011 is Ollanta Humala Tasso. He won by "promising the poor and disenfranchised Peruvians a fair share of the wealth from Peru's key Natural Resources." ("Politics & Political History Of Peru", 2015). The second well-known politician would be the Prime Minister Pedro Bellido. This position does not have the right to exercise executive power but is noted as a head of government along with the chief of state and first Vice President.

Trade

Peru's trade highly depends on natural resources, these items are copper, gold and zinc which makes Peru one of the largest producers in the world for these items. Although Peru's main market is made of exports from the United States, Europe, China, Chile and Canada, Peru produces plenty of coffee, potatoes, mangoes, asparagus, textiles, and fishmeal. The economy in Peru depends on the international prices of its main commodities which have seen a growth of 9% a year between 2007 and 2008 because the world price for minerals and metals has increased. The United States is Peru's biggest trade partner whose imports include cereal, refined oils along with machinery and many others ("Peru - Foreign Trade", 2015).

Cuba's main export includes sugar, nickel, minerals, fish products, tobacco and citrus fruits. Cuba has had relationships with several countries when it comes to trade. Imports for the country include mineral fuels, food as well as machinery and transport equipment. Sugar and honey make up almost half of Cuba's commodity export market ("Cuba - Foreign Trade", 2015). The United States was one of the main sources for trade until it was down to 4 percent in 1961 and shortly ceased entirely after that. The same can be said for Cuba-Soviet Union relationship which after a few years dissolved. In 2002, the United States was a trading partner once again and began to sell food to Cuba ("Cuba", 2015).

Currency

Currency in Peru has gone through a few changes over the years. The Nuevo Sol ("new sun") is the monetary unit in Peru which was introduced in the 1860's. However during Chile's involvement of Peru it was replaced by the Inti, but changed back in the 1930's. Currency changed in the 1980's due to severe inflation. The Nuevo Sol is currently at an exchange rate of 3.37 Nuevos Soles per 1 United States dollar ("Xe Live Exchange Rates", 2015). Monetary units in Peru are issued in the form of coins ranging from 5 centimos to 5 nuevo soles and banknotes are valued from 10 to 200 Nuevos Soles. Images of historical figures illustrate the banknotes and coins ("Nuevo Sol Peruvian Currency," 2015).

Cuba has two types of currency. The one most commonly used is the Cuban Pesos, but for those who are traveling to Cuba, the Cuban Convertible Peso is used. The currency coins are valued at 1, 2, 3, 5, 20, 40 and 100 centavos and notes are 1, 3, 5, 10, 20, 50 and 100 pesos, however, there are some differences in the two currency, the Cuban Peso, and the Cuban Convertible Peso. Convertible Pesos purchased with United States dollars will be exchanged with a mandatory 10% tax according to the WorldAtlas website ("Cuba", 2015"). The convertible pesos can only be obtained and used in Cuba as it is not internationally recognized.

Major Industries and Unemployment

The major industries in Cuba are all based on items that are manufactured which in all ways can produce agricultural products. Cuba is a country that is known worldwide for their Tobacco products which is also one of their industry's that continues to grow tremendously. For many a decades Sugar milling has been the industry in Cuba with the major substance which brings in most profit. Other industries in Cuba that have made a huge impact are Petroleum, Food processing, Oil refining and just as well Large Fleets for fishing operations.

Cuban unemployment has changed over the many years. It has been known as the communistic country that defies their own people to have nothing which even implies their financial success. Most Cubans work for their own government alongside the wage that is also a downward spiral of living. The unemployment issues within this country are minuscule. The pay is very low and even compared to minimum wage in America. Over the past decade the unemployment rate has decreased that in the year 2014 it was down to 2.70%.

Peru has a growing economy of industries that can provide much of the needed commodities for their country as well as to be used for exporting. Most of their major industries are food processing, steel textiles and even clothing. The petroleum industry is big in Peru just as it is in Cuba, but in Peru they produce it along the Northern coast in the Amazon in a large refinery out of Talora. Peru has a mining industry that produces copper and silver which is seen as most valuable to their countries success in mineral making that can be exported throughout the world to bring profit to this country. Although there is a lot of major industries in Peru that flourish with exporting their products they produce there is still unemployment. The Peruvian unemployment rate has decreased within the last year but as the years before it normally fluctuates up and down throughout each year.

Conclusion

In conclusion, Cuba and Peru both have similarities and differences in politics, and economic factors. Cuba is a communist country which has been ran by a well-known politician of Fidel Castro. His brother Raul succeeded him. Peru is a democratic country and is ran much like the United States for it has a President named Ollanta Humala Tasso. Peru has had many different types of currency throughout the years, while Cuba has always had only two types of Peso's. Cuba and Peru both have popular traded goods that are natural resources along with produce. Sense the trading business is good within the countries both of them have seen a decrease as years go by in unemployment.

References

Cuba's Government. (2015). Retrieved from http://www.globalsecurity.org/military/world/cuba/government.htm

Communism. (n.d.) American Heritage® Dictionary of the English Language, Fifth Edition. (2011). Retrieved December 9 2015 from

Peru Executive Branch. (2015). Retrieved from

Politics & Political History of Peru. (2015). Retrieved from

Peruvian Government. (2015). Retrieved from

Cuba. (2015). Retrieved from

Cuba. (2015).Retrieved from