How did the oil crisis in the 1970s illistrate the problem of economic interdependence?
1. all nations rely on oil and when nations with oil resources underwent political crises, production was halted and prices soared, creating economic shock waves.
2. the dependence of the us on middle e oil was seriously damaged when saudi arabian oil fields were attacked by afghnistan's rebel forces
3. multinational corporations had brought new technologies to developing countries, which used this new technology to create alternative fuels at high costs
4. less-developed nations, once dependent on the middle e for oil, joined the OPEC and were able to get substantial discounts on oil reserves
i think its d
Nope.
The correct answer is A: All nations rely on oil, and when nations with oil resources underwent political crises, production was halted and prices soared, creating economic shock waves.
The oil crisis in the 1970s highlighted the problem of economic interdependence because it demonstrated how interconnected nations' economies are when it comes to a crucial resource like oil. When nations with oil resources, such as the members of the Organization of the Petroleum Exporting Countries (OPEC), underwent political crises (such as the Yom Kippur War and the Iranian Revolution), they reduced oil production and placed embargoes on oil exports. As a result, oil prices soared and caused economic shockwaves around the world.
To arrive at this answer, it is important to analyze the options provided. Option B mentions the US's dependence on Middle Eastern oil and the attack on Saudi Arabian oil fields by Afghanistan's rebel forces. However, there is no historical evidence to support this scenario. Option C discusses multinational corporations bringing new technologies to developing countries to create alternative fuels at high costs, which does not directly relate to the oil crisis of the 1970s. Option D describes less-developed nations joining OPEC and receiving discounted oil reserves, but this does not highlight the problem of economic interdependence; rather, it shows the involvement of these nations in the decision-making of the oil market. Therefore, option A is the most accurate explanation of how the oil crisis in the 1970s illustrated the problem of economic interdependence.