Question $1$: Our reading discusses the issues to trade in $$Barriers to Trade and the Underground Economy. Issues with blocked trade and commerce may be a significant problem to the organization. If the firm is unable to move the product from Point A to Point B$,$ the firm will lose its sustainable advantage.

Some products are harder to transport than others. The article mentions Cuban cigars, which $($until recently$)$ were very difficult to move into the United States. The government may choose to block trade for different reasons. Political factors played into restrictions imposed on Cuban cigars. Health and safety reasons are in place to restrain certain drugs, while ethical$/$moral reasons block the selling of body parts and prostitution. There may still be demand for these products and services though, and oftentimes that demand is supplied through black$-$market access.

A$.$ For many years Cuban cigars could not be imported into the United States. Much of this was due to a trade embargo in place with Cuba, blocking all imports into the US$.$ This was lifted in $2016,$ however.

a$.$ Prior to the embargo lift, Cuban cigars were often smuggled into the US$.$ Along with the smuggled cigars, counterfeits were often made and then sold $($at a high cost!$)$ to US consumers. Knowing that these cigars were accessible through the black market, do you think the embargo served any purpose?

B$.$ Legalizing marijuana in different states is taking place. In the past, consumer health and safety were reasons used for outlawing marijuana. Were those valid reasons? Using different reasons mentioned in the article, explain whether marijuana should be legalized. Why or why not?