Answer to Question #125739 in Microeconomics for risenga kulani

Question

Why economic protection in the world oil market regarded as the main reason for joining opec?

Answer 1

Economic protection in the world oil market is regarded as reason for joining OPEC since the organization formulate policies that offer protection to the interest of the selling state and buying state. Additionally, OPEC regulates the international prices of oil ensuring that there is no exploitation. Therefore, a country that has joined the OPEC will be protected economically.