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Difficulty: EasyInternational Economic Organizations and Regional Integration (ECOWAS, OPEC, IMF, World Bank, WTO, AfDB)

Which international economic organization is primarily responsible for establishing petroleum export quotas to stabilize price levels in the global crude oil market?

  1. Organization of the Petroleum Exporting Countries (OPEC)Answer
  2. B
    International Monetary Fund (IMF)
  3. C
    World Trade Organization (WTO)
  4. D
    Economic Community of West African States (ECOWAS)

Answer

Organization of the Petroleum Exporting Countries (OPEC)
The Organization of the Petroleum Exporting Countries (OPEC) was established to unify petroleum policies among member states and maintain stable prices in international crude oil markets through supply management and production quotas.

Step-by-Step Solution

1
Identify the primary operational function described in the stem, which involves establishing petroleum export quotas to stabilize crude oil prices.
The target function is specific to international crude oil supply regulation.
Production quotas are the principal mechanism used by petroleum-producing cartel nations to manage market supply.
2
Compare the responsibilities of each listed economic institution.
The Organization of the Petroleum Exporting Countries (OPEC) is explicitly mandated to coordinate petroleum policies and output levels among member states.
Other organizations focus on international financial stability, multilateral trade rules, or regional economic integration.

Key Concept

Role and Mandate of OPEC in International Trade
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Topics

International Economic Organizations and Regional Integration (ECOWAS, OPEC, IMF, World Bank, WTO, AfDB)

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