Which of the following BEST describes the role of The Organization of Petroleum Exporting Countries as a marketing organization?
A) It uses a pricing strategy of controlling world prices through collective action.
B) It is regulated by NAFTA and the EU.
C) It uses countertrade to obtain valuable foreign investments.
D) It was formed to address the growing competition from Venezuela and North Sea crude exploration.

Question

Quizplus · Accepted Answer

OPEC's role as a marketing organization is to control world oil prices through collective action, which involves setting production quotas on its member countries to restrict the supply of oil and drive up prices. This strategy is aimed at maximizing revenue for OPEC members and maintaining their market dominance in the global oil industry. NAFTA and the EU do not regulate OPEC, and OPEC does not typically use countertrade to obtain foreign investments. The organization was formed in 1960 to address the growing competition from non-OPEC countries that were exploring for crude oil, so D is partially correct but not the best answer.

Which of the Following BEST Describes the Role of the Organization