Question

OPEC (The Organization of the Petroleum Exporting Countries) can be considered as a ‘cartel’ which is a group of separate companies that collectively:

a set prices, control output, or take other actions to maximize profits
b dictates how other countries should use their products
c produces more products in order to beat the competition
d works on forming a union against management of other companies

Answer 1

OPEC, considered a cartel, is a cooperative of oil-exporting countries that set prices and control output to maximize profits. They have impacted global oil prices significantly, particularly evidenced by the 1970s energy crisis. These agreements are not legally enforceable, which means individual countries could theoretically deviate from the collective decisions without legal repercussions.

Step-by-step explanation:

The Organization of the Petroleum Exporting Countries (OPEC) can be considered a cartel which is a group of separate companies that collectively set prices, control output, or take other actions to maximize profits. Formed in 1960, OPEC is a cooperative made up of oil-exporting nations including members in the Middle East, Venezuela, Angola, Nigeria, and Ecuador. They have historically demonstrated their power by coordinating policies concerning the oil market to affect oil prices and allocate production levels. For example, during the 1970s, OPEC's decision to reduce oil exports led to an energy crisis and increased oil prices.

OPEC countries have agreed to act like a monopoly by holding down output and keeping prices high to ensure that all member countries can make high profits from oil exports. Despite such agreements, they are not legally enforceable in the international legal system. If a member country decides to break away from the agreed policies by cutting prices or increasing oil exports, another member country cannot take legal action against it.