6A) Economic & Regulatory Trends

Regulatory: Legalization of Marijuana

·        Source: https://www.investopedia.com/articles/investing/111015/future-marijuana-industry-america.asp?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo

• During the last few years, the has been a strong movement to legalize cannabis. When this process started, the main purpose was to have access to medical marijuana, like CBD which is a component found in weed. It would help prevent and fight some diseases (further details in next bullet point). Now a days, people are also seeking the legalization of recreational Marijuana (as of January 2019, there are 33 states that completely legalized marijuana for medical use, and 10 states that allow it for recreational use). The legal use of cannabis will also change the game for many people like drug dealers, and cigarette and alcohol, which can see their sales affected by a shift in popular preferences.
• Studies show that cannabis and its components can help treat many diseases and disorders, and people suffering from cancer, diseases that affect the immune system, inflammation, pain, seizures, and mental disorders could benefit from it (www.drugabuse.gov). On the recreational side of it, marijuana is not considered an addictive substance, which could be very attractive to people who want to avoid becoming dependent and still want to enjoy the “pleasure” of a stimulant. It is the opposite with substances like caffeine, nicotine, alcohol, and other 
• The level of difficulty of the opportunity depends on the resources available. I think that for a small startup it would be extremely hard to succeed in the business of cannabis because of the huge competition out there, and because it is very sensitive to regulations and changes. In the other hand, I think that it becomes easier for a big company with tons of cash in invest and the ability to lobby some 
• I saw this opportunity because I try to stay on top of news that influence the stock market, and it was very interesting to follow how the federal government and the states would act, also how very soon, companies and individuals were trying to take advantage of any situation related to marijuana. But definitely got more into it when marijuana companies started doing IPOs. My view of this opportunity could be different from someone else because they might not agree on its medical benefits or think that it affects people in a negative way when consumed for recreation.

Regulatory: Internet Service in Cuba

·        Source: https://www.cibercuba.com/noticias/2018-12-05-u1-e20037-s27061-partir-6-diciembre-activa-internet-datos-moviles-cuba-tarifas

• ·        I am Cuban and I get informed of how things are going in Cuba quite often. One of the last big surprising changes was the announcement that ETECSA (national and only telecommunication company in Cuba) would start giving 3G mobile data service to the public. Internet has been around in the world since the 90’s and 3G mobile data actually started in 2003. It means that Cuba has fallen behind in the participation of the world-wide network and the recently developed term Internet of Things. This opens a whole new world of both national and foreign companies since it increases the reaching capacity of marketing campaigns and news.
• ·        The customers for internet in Cuba would be basically the whole country, especially the Cuban “middle” or “high” class, and the opportunity to reach those people should be taken for companies that want to target that market segment, and for me it should be mandatory that Cuban companies take advantage of internet service too.
• ·        I think it is really easy to take advantage of this opportunity since the only action needed is to create websites or develop a digital marketing campaign.
• ·        This option came to my mind, and probably not too many people because I am Cuban, and I like to stay informed of the regulations and changes that occur in Cuba. I spent 18 years of my live in Cuba and have gone several times in the last few years and I have been able to get different perspective about opportunities in Cuba. I have experienced how people think differently now and how people have started to understand the advantages and disadvantages if been connected to internet.

Economic: Trade War

·        Source: https://www.businessinsider.com/stock-market-news-us-china-trade-war-and-global-growth-fears-push-lower-2019-1

• ·        The trade war going on between US (the biggest consumer in the world) and China (the biggest producer in the world) has affected the economy of almost every country in the world. One of the first effects was the drop like a brick of the stock market due to fear among investors. In this case some optimistic investor could take advantage of the low prices to buy stocks “on sale”. Another impact of this conflicts is that national companies now have to pay higher taxes to buy commodities from China, and to sell products and services in that country.
• ·        Examples of industries affected: technology and automakers. In the other side, it should boost the national economy since it will force companies to increase manufacturing processes in US and use national produced commodities. Another effect of the increased demand for national manufacturing and production of commodities is the increase of jobs availability, lowering unemployment rates. This creates another “customer” for this opportunity (unemployed people).
• ·        I think this situation is really challenging to exploit because every step in the negotiations could be crucial and might lead to an ugly end like a third World War or negative consequences for the American economy.
• ·        Like most immigrants, I am always trying to pay attention to what President Trump does, and it has been one of his most wild decisions. It also came to my mind because I follow the stock market and it was a headline in every single newspaper for a while.

Economic: Increase in the Consumption of Organic Food

·        Source: https://www.statista.com/statistics/196952/organic-food-sales-in-the-us-since-2000/

o   https://www.statista.com/statistics/273090/worldwide-sales-of-organic-foods-since-1999/

• ·        As the information shown in the previous link, sales of organic foods have been increasing constantly during the last couple of decades. It is due to the increased in the awareness of people of how bad all the chemicals and additives in non-organic foods are. Also, after a long period of time where the number of cases like diabetes, heart attacks, and obesity was extremely high, people started concerning about eating healthier and think more about what is in their food.
• ·        Customers in this case would vary, it would go from wealthy families (which are usually more educated in this topic and have the resources to constantly buy organic food) because organic food tends to be more expensive; to people suffering from diseases like diabetes and cardiac issues. Also, most “fitness” people, who are gym freaks and love to stay on top of their bodies and health.
• ·        It would be an easy opportunity if people were informed on the benefits of organic foods and understand the advantages of purchasing so. The challenge is that because it tends to be more expensive compared to non-organic similar, people are not willing to sacrifice their purchasing power.
• ·        I like to be in shape and eat healthy, it feels good for me. Therefore, I always like to know what I’m eating and try to get the best quality food, that is why I started learning about organic foods and realized that it was becoming a trend.