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Business
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Number of pages / Number of words: |
3 / 774 |
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Saudi Arabia is a dominant firm. Saudi Arabia does not rely on any other more volatile countries within OPEC in order to restrict their output.
3. Through political power, OPEC Arab members are using oil as a weapon against Israel and the West.
4. The reason given on the 1973 200% price increased was that the competitive supply curve is backward bending, so that a slight shift in supply or demand can dramatically increase price and reduce output...
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Today the 120% increased from early 1990s to todays is base on the political influence in the white house of Big 3 members of the oil production in United States (Chevron, Exxon and Conoco), so the impact is internal for the domestic policy and not because of OPEC influence.
The Monopoly-Cartel Theory
One of the main reason why OPEC is consider a monopoly-cartel is because it can control price oil base on their output, even if they operates on a very low capacity...
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