Theory question 112
International Economic OrganisationsGive five reasons for the continued existence of the Organization of Petroleum Exporting Countries (OPEC)
Show the model answer
Model answer
Any five: to stabilise oil prices and avoid harmful fluctuations; to secure steady income for member countries; to regulate output through quotas; to co-ordinate members' petroleum policies; to protect members against exploitation by oil companies and consumer countries; to secure regular supply to consumers; to give members bargaining power; to provide aid through the OPEC Fund; to promote technology transfer and training in the oil industry.
Explanation
OPEC continues because members still gain from co-operation.