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olga nikolaevna [1]
3 years ago
7

In 1960, Iran, Iraq, Kuwait, and Saudi Arabia joined Venezuela to form the

Social Studies
1 answer:
AfilCa [17]3 years ago
3 0

Answer:

By controlling supplies, OPEC nations were able to set the prices for oil.

Explanation:

OPEC which is an acronym of Organization of the Petroleum Exporting Countries was established in1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela and has been increased to fifteen countries presently through the controlling of supplies.

OPEC nations were able to set oil prices to have control over the demands and supplies. This helps the OPEC members, with the belief that controlling oil supplies leads to equal aggregate demands and supply thereby leaving no surplus of oil.

Hence, the collaboration generates more money for the members of OPEC

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Cassie on the other hand is analysing value capture. Value capture is a situation whereby a firm accrues profit by charging a price that exceeds the cost they got for a product or for rendering service

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I hope this helps you out!

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