Question

many Middle Eastern countries are dependent on oil for income why is this a problem?what is a possible solution? your answer should be written in four or more complete sentences.​ PLEASE AWNSER ASAP!!

Answer 1

Answer:

Being reliant on just one thing to drive the economy is a problem because even minor changes can lead to serious problems, so a solution is to develop other business sectors on time.

Explanation:

Most of the countries in the Middle East have their economies almost exclusively reliant on just one thing, that being the oil. They do possess some of the largest oil reserves in the world, but even though everything is going great with the trade of it for now and obtaining enormous amounts of money, that can easily change.

Being reliant on just one industry that is dependent on a single natural resource is a huge risk. If there are just slight changes in the price or demand goes down the economy immediately suffers badly. With the trend of the developed countries to gradually move away from fossil fuels, the Middle Eastern countries may soon face a huge economic problem. In order to try and prevent such a scenario, they can simply start to develop other business sectors, high profile ones that bring in lots of money, such as banking and tourism, so when the time comes that the oil is not so popular anymore, they will have other sectors that will drive their economy.

Answer 2

(This is not my answer btw I am just putting it down for other people, I think it is the person above me's answer).

Being dependent on a single resource is a big problem because if the demand for it goes down it will destroy the economy. A possible solution is that the countries develop other industries over time so that they can sustain themselves even if the oil is not in demand anymore.

Explanation:

Most of the countries in the Middle East have economies that are based on oil and the primary reason as to why this is the case is that this is the most abundant resource, but also a resource that is in high demand in the world. This has contributed to rapid economic growth and development in the countries of this region, but not everything is so rosy.

Being fully dependent on a single product is very dangerous. Even slight oscillations in the price or decrease in demand can have catastrophic economic consequences. When taken into account that a lot of countries around the world are trying to gradually eliminate the use of fossil fuels and replace them, it gives a sign that in the near future the demand will go down. Even if the demand doesn't go down the reserves are limited.

The best way to counter this and make sure the economy doesn't collapse when some of those things happen is to develop other industries. Considering how the geography of the region is and that there aren't many natural resources, the best way would be to develop the service industries, such as the banking and tourism.