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Which word best describes the economy of the oil-producing states after the sharp decline of oil prices in the 1980s?

agriculture-based

diversified

specialized

tourism-based

2 Answers

5 votes

Answer:

diversified

Step-by-step explanation:

User Rikijs
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4 votes

Answer:

After the decline of oil prices in the 1980s, the economy of the oil-producing states became diversified.

Step-by-step explanation:

With the fall in oil prices, the OPEC unit broke down. Exporting countries such as Mexico, Nigeria and Venezuela, whose economies had expanded in the 1970s, experienced economic difficulties and had to diversify their economies to other areas, such as tourism, industries and agricultural exportation. The economic power of Saudi Arabia was significantly reduced.

The collapse of prices in 1986 benefited consumer nations such as the United States, Japan, Europe and Third World countries, but represented a serious reduction in income for the producing countries of Northern Europe, the Soviet Union and OPEC.

The Soviet Union had become a major oil producer before the surplus. The fall in prices contributed to the final collapse of this nation.

User Jakob Bowyer
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