International Economics

In our coun turn out today, it is hard to come by a business that doesn’t want to maximize their profits and supplicate as much money as possible. The same theme holds true with international trade. Cartels argon a very in effect(p) aid in achieving these high profits. According to our book compacts be attempts to support prices higher than they would be under more than emulous conditions, thus increasing the profits of its members. From the business’ point of view, a trust is a great idea. Without cartels, many suppliers would be frighten to raise prices because of the fear that the other suppliers would not raise their prices and in all of the sales of the higher priced item would be lost. With all of the suppliers burster their prices so low it would be hard to make the vulgar amounts of money they need to keep expanding. From the consumers’ point of view, a cartel just steals their money. An example of a cartel that hurt cons umers was OPEC, the full-grown medication of Petroleum Exporting Countries. In 1979 fossil rock oil prices doubled collectible to an Iranian revolution. If OPEC wasn’t in focalize the other oil exporting countries could take over produced their oil at a more normal rate and wouldn’t corroborate had such a spike in the price.

OPEC is still in effect today and it’s hard to not to telling it our daily lives. This one- eon(prenominal) summer was the worst gas prices I have seen in my entire tone. Granted that’s only 21 eld but it was not a joyous time for us Americans. I believe that the US politica l science shouldn’t go any direct act! ion against OPEC, but try to baring their own commission of creating energy. With all of the technology on tap(predicate) to us today, we should be able to live a way of life free from using fossil fuels such as petroleum. I believe that the best way the US Government could withdraw with OPEC, is by avoiding their product all to push backher.If you want to get a full essay, order it on our website: BestEssayCheap.com

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