Description
Chapter 7 of International Economics textbook, Carbaugh (2019) provides a historical account of OPEC and its power in controlling the global petroleum supply. In a critical essay, investigate the dynamics OPEC has faced in the global market in the last ten years. You may select a member country and analyze the effects from the perspective of that jurisdiction. Support your findings with additional academic references.What style of leadership is most likely described in this case and why have you reached that conclusion?
- THE essay is required to be five pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements.
- Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.
- Use APA style
- Write an essay that includes an introduction paragraph, the essay’s body, and a conclusion paragraph.
- Use this references:
- 4 to 5 references are enough
Explanation & Answer
Complited work.
Running head: DYNAMICS OPEC FACES IN THE WORLD MARKET
Historical Account of OPEC and Its Power in Controlling the Global Petroleum Supply
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DYNAMICS OPEC FACES IN THE WORLD MARKET
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There is a widespread belief that the inflation and balance of payment problems facing
the American economy are the results, in no small measure, of the machinations of the
Organization of Petroleum Exporting Countries (OPEC). The company (OPEC), openly fixes
prices, and price-fixing is if engaged in by domestic American firms, a per se violation of section
1 of the Sherman Antitrust Act. In the apparent absence of an applicable long-arm statute, it will
not be possible to obtain personal jurisdiction over OPEC as an organization unless it is
"present" in the United States. Perhaps some such presence can be found, but it is not at all
evident that OPEC's contacts with this country are sufficiently direct to constitute presence. It is
worth noting, however, that if personal jurisdiction could be obtained over OPEC, there would
be fewer remaining obstacles to relief than there are concerning the member states. Since OPEC
is not a state, it can claim no immunity under the FSIA. Moreover, it is an "association" and,
arguably, one created under the laws of foreign states (Powell, 1990).
As by the case Sovereign Immunity and the Suit against OPEC presented in the law
courts of America, the court's arguments in the OPEC case are flawed on several points. That
underlying purpose is to ensure that clashes of significant policies between different nations take
place in the diplomatic arena rather than the courts of one or another country. Unfortunately, the
commercial-governmental distinction in the FSIA and its legislative history is not an ideal
instrument for accomplishing this purpose. It fails to take into account the importance of the
activity to the national economy and the extent to which the foreign nation identifies the business
with its domestic policy. Price fixing of a commodity on the world market is, from the standpoint
of common sense and the explicit language of the legislative history, a commercial activity. But
for the FSIA, it must be held to be "non-commercial" in this case. It must be so held because the
cartelizatio...
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