Question

Organizations like OPEC have formed ________.

A) In order to take maximum advantage of developed nations' dependence on imported oil
B) As a military alliance to protect developed nations' energy reserves
C) To ensure that developing nations get their fair share of fossil fuels
D) To protect their national members' petroleum reserves for their own use
E) To develop technologies to conserve non-renewable energy resources

Answer 1

OPEC was formed to exploit the reliance of developed nations on imported oil, aiming to maximize the profits of member countries by regulating the oil supply and price.

Step-by-step explanation:

Organizations like OPEC have formed in order to take maximum advantage of developed nations' dependence on imported oil (A). OPEC, the Organization of Petroleum Exporting Countries, is a cooperative established in 1960 by oil-exporting nations to regulate the global oil market. By controlling production and thus influencing global oil prices, OPEC's member countries aim to maximize their profits from oil exports. This economic alliance includes major oil-producing nations, such as Saudi Arabia, Iran, Venezuela, and recently countries like Angola and Ecuador.

Highlighting the influence OPEC has had since its inception, the organization demonstrated its power in the 1970s by initiating boycotts against Western nations, causing a severe energy crisis and a hike in oil prices. The cooperative functions much like a monopoly by setting production quotas for its member countries (with the exception of Iran), thereby controlling the supply of oil in the market and influencing its price. Such actions make import-dependent nations vulnerable to fluctuations in supply and prices of oil.