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Initially in Cuba they didn’t allow FDI.

Later, they witnessed economic crisis so


they opened foreign investment. As the situation started to settle, they imposed
restrictions again. To cope with the constant changing scenarios, in 2008 they
came with stringent laws to maintain foreign relations and investments. Another
problem of investment is Cuba follows dual currency model. The new policies, had
advised three strategies for foreign investment.
Nestle, under the new strategies, entered through a JV model in share with the
Cuban government. Nestle started manufacturing ice-creams and attracting
tourists over the local population given their purchasing power differences.
However over time, nestle sustained in Cuba.

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