how did oil crisis in the 1970s illustate the promblem of economic interdependence?
A.all nations rely on oil.
C. multinational corporation had brought new technologies to developing countries
i think its a
If this is the complete answer, then I agree with you.
"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."
http://en.wikipedia.org/wiki/1973_oil_crisis
The correct answer is A. All nations rely on oil.
The oil crisis in the 1970s served as a vivid illustration of the problem of economic interdependence because oil, being a crucial commodity, is pivotal to the functioning of economies worldwide. During this period, several Middle Eastern oil-producing nations imposed an oil embargo on countries that supported Israel in the Yom Kippur War. Consequently, a sudden and significant reduction in the global oil supply occurred, leading to skyrocketing oil prices and severe energy shortages in many countries.
This crisis exposed the vulnerability of countries heavily reliant on oil and highlighted the interdependence between oil-producing nations and oil-consuming nations. Virtually every country in the world depended on oil for transportation, manufacturing, heating, and various other essential activities. Therefore, any disruption in the oil supply chain had immediate and widespread ramifications across national economies.
The crisis also shed light on the geopolitical complexities that arise from economic interdependence. It became evident that the actions and decisions of a few oil-producing countries could profoundly impact the economic stability and well-being of nations around the globe. Consequently, this event prompted many nations to seek alternative energy sources and develop strategies to reduce dependence on oil, emphasizing the need to diversify energy supplies and strengthen energy independence.
It is worth noting that while multinational corporations brought new technologies to developing countries, this factor alone does not directly address the problem of economic interdependence as illustrated by the oil crisis in the 1970s. The central issue during the crisis was the reliance on oil as a vital resource rather than the introduction of new technologies by multinational companies.