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Difficulty: MediumNon-Aligned Movement (NAM) and OPEC

Which of the following primary economic objectives led to the founding of the Organization of the Petroleum Exporting Countries (OPEC) in Baghdad in 1960?

  1. Coordinating and unifying the petroleum policies of member countries to stabilize prices in international oil markets.Answer
  2. B
    Creating a collective military defense pact among oil-producing developing nations against superpower aggression.
  3. C
    Mandating the complete privatization and sale of state-owned petroleum assets to international investors.
  4. D
    Establishing a supranational judicial tribunal with mandatory jurisdiction to settle boundary disputes between member states.

Answer

Coordinating and unifying the petroleum policies of member countries to stabilize prices in international oil markets.
The Organization of the Petroleum Exporting Countries (OPEC) was founded in September 1960 in Baghdad to unify and coordinate the petroleum policies of its member states. Its primary economic goal is to secure fair and stable prices for petroleum producers, ensure an efficient, economic, and regular supply of petroleum to consuming nations, and safeguard the economic interests of oil-producing countries.

Step-by-Step Solution

1
Analyze the core mandate of OPEC formed at the 1960 Baghdad Conference.
OPEC was established by founding members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela) to assert sovereign control over their natural resources.
The primary catalyst was preventing unilateral price reductions by multinational oil corporations and securing fair revenues for petroleum-exporting developing nations.
2
Evaluate the option choices against OPEC's foundational objectives.
Unifying petroleum policies and stabilizing international oil markets directly matches OPEC's core objective.
OPEC does not handle mutual military defense, judicial border arbitration, or mandated privatization of public assets.

Key Concept

Founding Objectives of OPEC
Estimated Time:1m 0s
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Topics

Non-Aligned Movement (NAM) and OPEC

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