LAW 1310 Lecture Notes - Lecture 21: North American Free Trade Agreement, Corporate Tax, Presbyterian Polity
24 Apr 2018
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In 1960, iran, kuwait, saudi arabia and venezuela formed opec. Opec"s goal is to (cid:272)o(cid:374)trol the oil i(cid:374)dustry (cid:271)y setti(cid:374)g produ(cid:272)tio(cid:374) le(cid:448)els a(cid:374)d pri(cid:272)es. Commodity that countries around the world needs, petroleum. They realised that they should(cid:374)"t (cid:272)o(cid:373)pete (cid:449)ith ea(cid:272)h other (cid:894)the (cid:373)e(cid:373)(cid:271)ers(cid:895) (cid:271)ut rather from a monopoly (much like eu steel- how it started) Saudi arabia is the leading country- 8. 2 millions of barrels a day. 1970s- huge oil crisis in the us due to opec. 1970s- war broke out between egypt and israel. Us showed a political support in the war by supporting israel, many countries in opec (arab muslim countries) stop supplying oil in the us to show their support for egypt. Prices skyrocketed, and economic growth slowed down. At this time period, you could only get gas between odd and even licensed car plates. Us realises that opec is really powerful. Today in 2018, us still imports a lot of oil from opec.
