Cartels Henry Fulford. What is a Cartel car·tel noun 1.An association of manufacturers or suppliers with the purpose of maintaining prices at a high level.

Slides:



Advertisements
Similar presentations
BLACK GOLD.
Advertisements

1 Econ 201 Spring b Market Failure: Oligopolies (more)
These frogs need flies to eat. We call this DEMAND. If they don’t eat, they will not survive. The fly is the food. We call this the SUPPLY STARTER: 1.What.
OPEC Organization of Petroleum Exporting Countries- Information for Standard SS7E6c.
Effects of Oil Revenues in ME & NA. Oil Reserves Nearly 70% of world’s known reserves and 60% of world’s oil supply by countries like Saudi Arabia Iraq.
Businesses would merge for two reasons 1. The desire for the business to become bigger. 2. Efficiency - Economies of Scale: the cost of production falls.
 OPEC – a cartel of countries that join together to make decisions regarding the supply of oil in the world market  GDP – the dollar market value of.
Economy of the middle east
Chapter 36 Energy Prices Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Chapter 38 Energy Prices.
How Much Oil is Left? By, Chase Carter By, Chase Carter.
AIM: How has the importance of petroleum played a role in the recent history of the Middle East? Do Now: Gas prices have nearly doubled since It.
Energy Nonrenewable Energy Resources. Energy  Energy Resources  U.S. has 4.6% of world population; uses 24% of the world’s energy  84% from nonrenewable.
© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin Chapter 33 Energy Prices.
Knowledge Connections Definition Picture Term Vocabulary 
Rank Country Production 1 Saudi Arabia 10,665 2 Russia 9,677 3 United States 8,330 4 Iran 4,148 5 China 3,845 6 Mexico 3,707 7 Canada.
McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 39 Energy Prices McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies,
 Today oil supplies about 40% of the world’s energy and 96% of its transportation energy.  Since the shift to oil, the world has consumed over 875 billion.
Welcome!  Please read the board and review your notes for today’s quiz – Obj #6-12 and
The Organization of the Petroleum Exporting Countries.
ECONOMICS Major Concepts. MAJOR CONCEPTS Everything has a cost and a tradeoff Incentives matter Voluntary trade increases value Competition influences.
How important is Venezuela in the Geopolitics of Energy
Important Groups that Global Perspectives Students Need to be Aware of.
History of the Middle East “The Extras”. The Arab League Definition: an organization of 22 Middle Eastern and African nations where Arabic is the spoken.
Oil in the Middle East.
Organization of the Petroleum Exporting Countries
Oil and OPEC. Another name for oil is petroleum Oil is a non-renewable resource = a natural resource that is not replaceable after it is removed.
7. With whom did Middle Eastern countries align during the cold War? 8. The Iran Iraq War took place between what years? 9. The invasion of what country.
OPEC Organization of Petroleum Exporting Countries Cartel that sets oil prices and supply –Formed to resist European and American companies –Hold 80% of.
THE MIDDLE EAST The Importance of Oil & OPEC. An Important Question What do you feel is the United States ’ interest in the Middle East? a. oil b. protection.
UNIT 6 Economy of Middle East/SW Asia. BA Video
 Warm Up: When you hear the term “Economics” what do you think of?  Objective: In this lesson, you will compare several aspects of the economies of the.
 A monopoly is a MARKET STRUCTURE in which only ONE seller sells a product for which there are no close substitutes.  A monopoly is A PRICE SETTER,
International Organizations Multi-national groups intended create for an economic purpose.
International Business Sean Redding, Luke Young. World Trade Organization (WTO) Organization for liberalizing trade. Governments use the WTO to sort out.
Organization of the Petroleum Exporting Countries Chad Geurink February 14, 2007 Model UN.
Using Petroleum ONE BARREL crude oil yields ALL OF.
OPEC Organization of the Petroleum Exporting Countries.
OPEC Founded in 1960 by 5 major oil producers (Iran, Iraq, Kuwait, Saudi Arabia and Venezuela) as a cartel to safeguard its members interests individually.
OPEC. Think about … in all the world, which country do you think consumes the MOST oil?
OPEC (Organisation of Petroleum Exporting Countries)
OPEC Organization of Petroleum Exporting Countries Founded 1960 by 5 member nations 1.Iran, Iraq, Kuwait, Saudi Arabia, Venezuela 2.HQ = Vienna, Austria.
Foreign Policy & International Trade
Victorian Furtney Emily Field Haille Monteiro. Purpose  Coordinates and unifies the petroleum policies of its Member Countries and ensures the stabilization.
OPEC. Think about … in all the world, which country do you think consumes the MOST oil?
Monday February  Drill: What are 3 things that use oil?  HW: Review Sheet due Feb 11  Obj: Evaluate the importance of oil to the Middle East.
Chapter 8 Energy and Civilization: Patterns of Consumption Energy and Civilization: Patterns of Consumption.
Organisation of the Petroleum Exporting Countries.
Oil in the Persian Gulf Tyler Brittain
Mexico’s Drug Cartels. Mexico’s Relationship with the US ► Main foreign supplier of marijuana ► Major supplier of methamphetamine ► Supplies a large share.
Erin Lowdon.  OPEC: The Organization of the Petroleum Exporting Countries ◦ Permanent intergovernmental organization ◦ Created at the Baghdad Conference.
Mexico’s Drug Cartels.
SS7E6 c: Students will explain the primary function of OPEC
How Oil and Water Affect The Middle East
The Natural Resources of the Middle East
Oil and OPEC.
A way of obtaining scarce resources
7 Chapter Competition.
Business Quizzes back.
Petroleum Economics Istvan Csato Department of Geological Sciences
Globalization in the Contemporary World
Trading Blocs (Free-trade associations)
Lubicon Cree Globalization Affecting Collective Identity
Oil In the Middle East Today oil supplies about 40% of the world’s energy and 96% of its transportation energy. Since the shift to oil, the world has consumed.
Section 3: OPEC and Oil in Southwest Asia
The Organization of the Petroleum Exporting Countries
OPEC Organization of Petroleum Exporting Countries
How has the U. S. government historically attempted to help the U. S
The Organization of the Petroleum Exporting Countries
The Importance of Oil & OPEC
Presentation transcript:

Cartels Henry Fulford

What is a Cartel car·tel noun 1.An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition. 2.A coalition or cooperative arrangement between political parties intended to promote a mutual interest.

Two types Drug Cartels are criminal organizations developed with the primary purpose of promoting and controlling drug trafficking operations. They range from loosely managed agreements among various drug traffickers to formalized commercial enterprises.criminal organizationdrug trafficking Business Cartels are a collection of businesses or countries that act together and agree to influence prices for certain goods and services. They do this by controlling production and supply. In the United States, cartels are illegal but they still thrive in many other countries

Examples A well known business cartel is OPEC (The Organization of Petroleum ‐ Exporting Countries). This cartel was established in 1960 by the the founding members of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Over several decades the countries of Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon and Angola joined OPEC, the latest being Angola in 2007.

Examples An example of a drug cartel is the Sinaloa Cartel or CDS which split from the Guadalajara Cartel in This cartel is the most powerful drug cartel in the world according to the USIC. The CDS is based mainly in Culiacán, Sinaloa. They mainly distribute and smuggle Cocaine Opium and Marijuana from Mexico and Colombia.Culiacán, Sinaloa Other drug cartels: Los Zetas, the Gulf Cartel, the Juárez Cartel

Global Influence of Cartels Drug cartels have massive influence over poorer countries such as Mexico or Colombia. This is done through corruption, violence and kidnappings. There have been several major assassinations of Municipal presidents (same thing as a mayor) in Mexico along with massacres and a pipeline explosion. Incidents like these create political pressure and fear in the political runnings of these poorer countries. The drugs themselves cause an increase of crime and poverty in whatever country they’re in.

Pictures of Influence

Global Influence of Cartels Business cartels influence the economies of countries by keeping prices high. For countries in the cartel this is a good thing but for the countries not in the cartel this means higher prices for imports.

Problems with cartels Members in cartels are often tempted to betray the other members and raise their production or supply and increase their personal revenue which can cause the collapse of the cartel. This makes cartels relatively unstable.

Bibliography "Cartel." Merriam-Webster. Merriam-Webster, 1 Jan Web. 02 Oct webster.com/dictionary/cartel "OPEC." OPEC :. Organization of the Petroleum Exporting Countries, 1 Jan Web. 02 Oct "Cartel Theory of Oligopoly." Cartel Theory of Oligopoly. Cliff Notes, 1 Jan Web. 02 Oct oligopoly "U.S. Intelligence Says Sinaloa Cartel Has Won Battle for Ciudad Juarez Drug Routes." CNS News. N.p., 1 Jan Web. 02 Oct "Thieves Blamed in Mexico Pipeline Blast That Kills 28." The Seattle Times. N.p., 1 Jan Web. 02 Oct