Unit 6: Industrialization and Economic Development
Availability to consumer goods
- Part of the wealth created in developed countries is used to purchase goods and services, especially those related to transportation and communications: • Motor vehicles: provide access to jobs and services • Telephones: enhance interaction with providers of raw materials and with customers • Computers: facilitate sharing of information with buyers and suppliers
Wallerstein, Immanuel
-(1930- ) The creator of the world system theory, which explains how the globalization of capitalism led to changing relations between countries -Said that as capitalism spread, countries around the world became connected to one another in ways they had not been before.EX:IMAGES
Single-Market Manufacturers
-Specialized manufacturers with only one or two customers. -Optimal location for factories is often in close proximity to the customers. Ex:Producers of specialized components attached to clothing e.g. buttons, zippers, or pins.Or makers of parts for motor vehicles.
Rostow's Stages of Modernization
1) Traditional stage - People in traditional societies build their lives around families, local communities, and religious beliefs. Their lives are often very similar to those of their ancestors, and they generally have very limited wealth. Most people are subsistence farmers. A century ago, most countries of the world were in this initial stage of economic development, and some still are. 2) Take-off stage - Often with the encouragement of political leaders, people start to experiment with producing goods not just for their own consumption but also for trade with others for profit. The country experiences something like an industrial revolution, and sustained growth takes hold. Urbanization increases, and technological and production breakthroughs occur. Greater individualism, a willingness to take risks, and a desire for material goods also take hold, often at the expense of family ties and traditional customs. 3) Drive to technological maturity - During this stage, economic growth is widely accepted, and people focus on attaining higher living standards. The economy diversifies as people become more prosperous and can afford some luxuries. Many miss the security of family and local community life, but poverty has been reduced greatly and material goods are much more common. Cities grow, as more people leave the farms, and modernization is evident in the core areas of the country. The rate of population growth is reduced as children require more years of schooling in order to survive in the increasingly complex society, and become more expensive to raise. International trade expands. 4) High mass consumption - Economic development steadily raises living standards as mass production encourages consumption of industrial products. Items that may have been luxuries in previous stages now become necessities as the society is structured on the expanding array of goods produced. This stage is marked by high incomes, with a majority of workers involved in the service sector of the economy.EX:IMAGE
Trasnational Corporation
A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located. EX:IMAGES
Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers.Ex:IMAGES
Less Developed Countries
A developing country with a low level of industrialization very high fertility rate, very high infant mortality rate and a very low per capital income.Or country that has low to moderate industrialization and low to moderate per capita GDP. Most are located in Africa, Asia, and Latin America.EX:UGANDA
Economic Geography
A discipline that studies the impact of economic activities on the landscape and investigates reasons behind the locations of economic activities.EX:IMAGES
Sweatshops
A factory or workshop, especially in the clothing industry, where manual workers are employed at very low wages for long hours and under poor conditions.EX:IMAGES
Conglomerate Corporation
A firm that is composed of many smaller firms that serve several different functions.EX:IMAGES
Capitalist World Economy
A global economic system that is based in high-income nations with market economies. Ex:Images
Trading Blocs
A group of neighboring countries that promote trade with each other and erect barriers to limit trade with other blocs. 1) North America - Most trade barriers between the United States and Canada have been eliminated over the past few decades, and Mexico was brought into the bloc by the North American Free Trade Agreement (NAFTA) in 1995. Since then, the three NAFTA countries have been negotiating with other Latin American countries to extend the trading bloc to new areas of the Western Hemisphere. 2) The European Union - Most barriers to trade have been eliminated among the members of the EU, with membership extended to Bulgaria and Romania in January of 2007. Even European nations that are not members of the EU (such as Switzerland and Sweden) depend heavily on trade with members. 3) East Asia - No formal organization of states exists in East Asia, but Japanese companies play leading roles in the economies of other countries in the region. Although many political tensions exist among the nations, the rapid economic development of many Pacific Rim countries has created a strengthening trade bloc in East Asia. EX:IMAGES
Oil
A liquid fossil fuel formed from marine organisms that is burned to obtain energy and used in the manufacture of plastics.EX:IMAGE
Value Added Productivity
A measure of productivity generated by subtracting the costs of of raw materials and energy from the gross value of the product.EX:IMAGES
Friction of Distance
A measure of the retarding or restraining effect of distance on spatial interaction. Generally, the greater the distance, the greater the cost of achieving the exchange. Although secondary industry may transport raw materials to factories, the cost usually goes up the farther the distance of transport from source to factory. At some point, the distance is too great for practical transportation.EX:IMAGES
Nonrenewable Resources
A natural resource that is not replaced in a useful time frame.EX:Resources such as fossil fuels.
Entrepots
A port, city, or other center to which goods are brought for import and export, and for collection and distribution.EX:IMAGES
Export-Oriented Industrialization
A trade and economic policy aiming to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage.Or a strategy that seeks to directly integrate the country's economy into the global economy by concentrating on economic production that can find a place in international markets.EX:IMAGES
NAFTA
A treaty signed in 1995 by Mexico, the United States, and Canada, which eliminated barriers (including most tariffs) to free trade among the three countries.EX:IMAGES
Modernization Theory
According to this theory (also called the westernization model), Britain was the first country to begin to develop its industry. The Industrial Revolution was spurred by a combination of prosperity, trade connections, inventions, and natural resources. Max Weber explained that the cultural environment of Western Europe favored change. Wealth was regarded as a sign of personal virtue, and the growing importance of individualism steadily replaced the traditional emphasis on kinship and community. Once started, the British model spread to other European nations and the United States, which prospered because they built on British ingenuity and economic practices. By extension, any country that wants its economy to grow should study the paths taken by industrialized nations, and logically they too can reap the benefits of modernization, or "westernization." Modernization theory identifies tradition as the greatest barrier to economic development. In societies with strong family systems and a reverence for the past, the culture discourages people from adopting new technologies that would raise their standards of living.
Modernization Model
According to this theory (also called the westernization model), Britain was the first country to begin to develop its industry. The Industrial Revolution was spurred by a combination of prosperity, trade connections, inventions, and natural resources. Max Weber explained that the cultural environment of Western Europe favored change. Wealth was regarded as a sign of personal virtue, and the growing importance of individualism steadily replaced the traditional emphasis on kinship and community. Once started, the British model spread to other European nations and the United States, which prospered because they built on British ingenuity and economic practices. By extension, any country that wants its economy to grow should study the paths taken by industrialized nations, and logically they too can reap the benefits of modernization, or "westernization." Modernization theory identifies tradition as the greatest barrier to economic development. In societies with strong family systems and a reverence for the past, the culture discourages people from adopting new technologies that would raise their standards of living.EX:IMAGES
North Atlantic Free Trade Agreement
Agreement between the United States, Canada, and Mexico to gradually remove tariffs and other trade barriers.EX:IMAGES
Variable Revenue Analysis
An approach to industrial location theory concerned with spatial variations in revenue. It concentrates on the demand side of the industrial location problem, as opposed to the cost side addressed in variable cost analysis.EX:IMAGES
Labor Intensic=v
An industry for which labor costs comprise a high percentage of total expenses.
Renewable Resources
Any natural resource that can replenish itself in a relatively short period of time, usually no longer than the length of a human life.EX:IMAGE
Substitution Principle
Asserts that an industry will choose to move to access lower labor costs despite higher transportation costs.EX:IMAGES
Agglomeration
Clumping together of industries for mutual advantage. Ex:A restaurant needs furniture and equipment, and the companies that provide those products have workers that bring business to the restaurant. All the workers need clothes that may be provided by a clothing store that also needs furniture and equipment and employs people that eat at the restaurant.
Newly Industrializing Country
Countries in the transition stage between developing and developed countries. Newly industrializing countries typically have rapidly growing economies.EX:IMAGES
Pacific Rim
Countries that border the Pacific Ocean on their eastern shores. EX:IMAGES
Post-Industrial Societies
Countries where most people are no longer employed in industry. EX:IMAGES
More Developed Countries
Country that is highly industrialized and has a high per capita GDP.countries with greater overall wealth. These countries tend to be more industrialized, bringing in money from manufacturing more goods.EX:The U.S. and Germany
Proven Resources
Defined: A supply of energy remaining in deposits that have been discovered.EX:IMAGES
Potential Resources
Defined: A supply of energy that is undiscovered but thought to exist.EX:IMAGES
Sustainable Development
Development that balances current human well-being and economic advancement with resource management for the benefit of future generations. EX:IMAGES
GDP per Capita
Dividing the GDP by total population creates the ____ ____ ___ ___ ___, a measure of the average person's contribution to generating a country's wealth in a year. EX:Annual per capita GDP exceeds $20,000 in MDCs, compared to about $1,000 in LDCs, with newly-industrializing countries somewhere in between. GDP Per Capita is strongly related to many social characteristics, including literacy rates and education levels, since economic development is dependent on a skilled work force.
New International Division of Labor
Division of the manufacturing process across several countries, wherein different pieces of the product are made in different countries, and then the pieces are assembled in yet another country. EX:IMAGES
Secondary Economic Activities
Economic activities concerned with the processing of raw materials such as manufacturing, construction, and power generation.EX:IMAGE
Primary Economic Activities
Economic activity concerned with the direct extraction of natural resources from the environment-- such as mining, fishing, lumbering, and especially agriculture. Ex:IMAGE
Proven Reserve
Energy deposits that have been discovered are called...EX: New deposits are being discovered each year, but petroleum is being consumed at a more rapid rate than it is being found, and world demand is increasing rapidly, especially with the acceleration of industry and wealth in China and India.
Maquiladora District
Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.A manufacturing zone was created in the 1960s in northern Mexico just south of the border with the United States. Workers in this maquiladora district have produced goods primarily for consumers in the U.S., and a number of U.S. companies have established plants in the zone to transform imported, duty-free components or raw materials into finished industrial products.EX:IMAGES
Resource Crisis
Future shortages of non-renewable energy sources with increased demand, solvable by use of renewable energy. Importance: Worldwide lack of resource in extremely high demand.EX:IMAGE
Weber Alfred
German geographer who was a major theorists of industrial location. He devised a model of how to understand industrial locations in regard to several factors, including labor supply, markets, resource location, and transpiration.Creator of the model that states that the optimum location of a manufacturing firm is explained in terms of cost minimization.
Meiji Restoration
In 1868, a Japanese state-sponsored industrialization and westernization effort that also involved the elimination of the Shogunate and power being handed over to the Japanese Emperor, who had previously existed as mere spiritual/ symbolic figure.Or the political program that followed the destruction of the Tokugawa Shogunate in 1868, in which a collection of young leaders set Japan on the path of centralization, industrialization, and imperialism. EX:IMAGE
Fossil Fuels
Including coal, petroleum, and natural gas, are residues of plants and animals that were buried millions of years ago. When these substances are burned, they generally cannot be replaced because the process of creating the fuels takes millions of years.EX: The world faces an energy sustainability problem partly because the three fossil fuels, especially petroleum, are rapidly being depleted.
Oligarchs (Japan)
Industrial and military leaders that came to political power, Japan modernized industries, organized armed forces, and transformed education and transportation systems to follow the western model. EX:IMAGES
Extractive Industries
Industries such as agriculture, forestry, fishing, and mining in which a raw product is taken from the environment.EX:IMAGES
Secondary Industry
Industries that deal with making products that are likely to be directly consumed by individuals.Or manufacturing businesses that take materials from primary industries and other secondary industries and make them into goods.EX:IMAGES
Bulk-Reducing Industries
Industries whose final products weigh less than their constituent parts, and whose processing facilities tend to be located close to sources of raw materials.
Bulk-Gaining Industries
Industries whose products weigh more after assembly than they did previously in their constituent parts. Such industries tend to have production facilities close to their markets.An industry in which the final product weighs more or comprises a greater volume than the inputs.
Footloose Industry
Industry in which the cost of transporting both raw materials and finished product is not important for the location of firms.Or Industry that locate in a wide variety of places without a significant change in its cost of transportation, land, labor, and capital.EX:IMAGES
Labor-Intensive Industries
Is an industry in which wages and other compensation paid to employees constitute a higher percentage of expenses.EX:IMAGES
Industrialization
Is the process by which economic activities on the earth's surface evolved from producing basic, primary goods (such as food products) to using factories for mass-producing goods for consumption.EX:IMAGES
GDP (Gross Domestic Product)
Is the value of the total output of goods and services produced in a country during a year. EX:IMAGES
Self-Sufficiency Model
It encourages them to isolate fledgling businesses from competition of large international corporations. According to self-sufficiency advocates, LDCs can only escape global inequalities by shielding local businesses from trade in the international market and encouraging internal growth. Countries promote self-sufficiency by setting barriers that limit the import of goods from other places. Some governments have set high taxes on imported goods to make them more expensive than domestic products, and others have fixed quotas on imported goods. Another approach is for a country to require international companies to purchase expensive licenses in hopes of discouraging them from selling within its borders.EX:India used all of these methods for years to encourage internal economic development. Although many Indian companies grew under the self-sufficiency model, one problem that emerged was inefficiency.
Quaternary Sector
It includes service jobs concerned with research and development, management and administration, and processing and disseminating information.EX:IMAGES
Northeast District (China)
Its earliest industrial heartland was the ___ ___ in Manchuria, centered on the region's coal and iron deposits near the city of Shenyang. EX:IMAGES
Kanto Plain
Japan's dominant region of industrialization is the ____ _____, which includes Tokyo and other nearby cities and suburbs that form a huge metropolitan area. Many industries and businesses chose Tokyo as their headquarters in order to be near government decisions makers. Japan has three other key industrial districts, each surrounding major metropolitan areas.
Transnational Corporations
Large corporations that are headquartered in one country but sell and produce goods and services in many countries.EX:IMAGES
Single Market Manufacturers
Located near the market--save money on transportation, aka products sold primary in one location.EX:IMAGE
Site Factors
Location factors related to the costs of factors of production inside the plant, such as land, labor, and capital.EX:IMAGes
Conglomerate Corporations
Massive corporation operating a collection of smaller companies that provide it with specific services in its production process. EX:A car company like General Motors actually consists of many smaller firms that produce car parts and other products that automobiles need.
Least Cost Theory
Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration. Transportation - The site of industry is chosen based partly on the cost of moving raw materials to the factory and finished products to the market. Business owners look for the least expensive transportation costs. Today, for most goods, truck transport is cheapest over short distances; railroads are most cost efficient over medium distances; and ships are cheapest over long distances. However, transportation involves terminal costs, which vary considerably, and are least expensive for trucks and most expensive for ships. Labor - The cost of labor is also taken into consideration, and cheap labor may allow an industry to make up for higher transportation costs. For example, a factory may relocate from the United States to Mexico, where transportation costs to market increase, but are more than made up by cheaper labor costs. Agglomeration - If several industries cluster (or agglomerate) in one city, they can provide support by sharing talents, services, and facilities. A restaurant needs furniture and equipment, and the companies that provide those products have workers that bring business to the restaurant. All the workers need clothes that may be provided by a clothing store that also needs furniture and equipment and employs people that eat at the restaurant. EX:- Hollywood, Silicon Valley, NY/Wall Street (Finance Firms), Car Manufacturers
Rostow's stages
Model that postulates that economic modernization of countries occurs in five basic stages between agricultural and service-based economies: Traditional society (economic focus on primary production), Preconditions for take-off (beginning of investment in the country's wealth by infrastructure), Take-off (economic shift focus onto a limited number of industrial exports), Drive to maturity (technical and technological advancements diffuse), Age of High mass consumption (industrial trade economy develops where highly specialized production dominates the economy).EX:IMAGES
Special Economic Zones
More and more cities of China are industrializing, partly through government-designated areas called ___ ___ __where foreign investment is allowed and capitalistic ventures are encouraged. EX:IMAGES
Mineral Fuels
Natural resources containing hydrocarbons, which are not derived from animal or plant sources. EX:IMAGES
Secondary Industrial Region
Places where agglomeration of the core and other clusters is not as great as Primary industrial regions EX:(Western and Central Europe, Eastern North America, Russia and Ukraine, And Eastern Asia), but is still significant, areas such as Brazil, South Africa, Malaysia, Argentina, and Southern Australia.
Secondary Sector
Portion of the economy concerned with manufacturing the process, transformation, and assembly of raw materials into useful products.EX:IMAGES
Ubiquitous
Present, appearing, or found everywhere. EX:IMAGES
Deindustrialization
Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly ________ region to switch to a service economy and to work through a period of high unemployment. EX:. The trend, particularly evident in the United States and Europe, is also apparent in Japan and more recently in the Four Tiger economies of East Asia (Hong Kong, South Korea, Singapore, and Taiwan). Deindustrialization has caused considerable concern about the affected economies and has given rise to a debate about its causes and likely implications. Many regard deindustrialization with alarm and suspect it has contributed to widening income inequality in the United States and high unemployment in Europe.
Rostow, W. W.
Prominent for his role in the shaping of American policy in Southeast Asia during the 1960s, he was a staunch opponent of communism, and was noted for a belief in the efficacy of capitalism and free enterprise. EX:IMAGES
Compressed Modernity
Rapid economic and political change that transformed the country into a stable nation with democratizing political institutions, a growing economy, and an expanding web of non governmental institutions. Ex:Mexico is often cited as newly-industrializing, with its dramatic economic growth that began in the 1980s based on its abundance of oil.
Newly-Industrialized Countries
Refers to countries that are building up their industries and infrastructure. These countries are generally shifting from an agricultural to an industrial economy.EX:China - major industrial growth after 1950-Soviet planners helped from 1949 to 1964.
Infastructure
Services that support economic activities. EX:IMAGES
The "Four Asian Tigers''
South Korea (largest), Taiwan (moving towards high tech), Singapore (Center for information and technology), Hong Kong(Break of Bulk Point): Because of their booming economies. » Development promoted by producing a handful of manufactured goods - clothing and electronics. EX:IMAGES
Potential Reserve
The amount of a resource in deposits not yet identified but thought to exist. Or (undiscovered).EX:IMAGES
Worker Productivity
The amount of work a worker can perform in a given period of time.EX:Customers served per hour.
Distance Decay
The decline of an activity or function with increasing distance from its point of origin - describes this tendency for people to stay fairly close to home.Industries are more likely to serve markets of nearby places than those far away. As distance increases, business activity decreases until it becomes impractical to do business. EX:Images
Deglomeration
The dispersal of an industry that formerly existed in an established agglomeration or exodus of businesses from a crowded area.Ex:Images
Location Theory
The general but logical attempt to explain how an economic activity is related to the land space where goods are produced. ----Variable costs - Energy, labor, and transportation is less expensive in some areas than others, encouraging industries to develop. -Friction of distance - Although secondary industry may transport raw materials to factories, the cost usually goes up the farther the distance of transport from source to factory. At some point, the distance is too great for practical transportation. -Distance decay - Largely because of the friction of distance, industries are more likely to serve markets of nearby places than those far away. As distance increases, business activity decreases until it becomes impractical to do business.
Value Added
The gross value of the product minus the costs of raw materials and energy.EX:IMAGES
Global Warming
The increase in earth's temperature caused primarily by the burning of fossil fuels. Earth is warmed by sunlight that passes through the atmosphere, strikes the surface, and is converted to heat. EX:Consequences could include massive migrations inland and countless economic and political disasters.
Locational Interdependence Theory
The influence on a firm's locational decision by locations chosen by its competitors. EX:IMAGES
Watt, James
The inventor of the steam engine, which allowed more flexible use of energy to drive new machines.(1736-1819) Improved upon Newcomen's steam engine. Watt's steam engine would be the power source of the Industrial Revolution.EX:IMAGES
Fordism
The manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods. Or a form of mass production in which each worker is assigned one specific task to perform repeatedly.Named after Henry Ford.EX:IMAGES
Primary Industry
The part of the economy that produces raw materials; examples include agriculture, fishing, mining, and forestry.EX:IMAGES
Space
The physical gap or interval between two objects.EX:IMAGES
Tertiary Sector
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment. EX:IMAGES
Economic Development
The process of improving the material conditions of people through diffusion of knowledge and technology, has occurred as a result of industrialization.EX:IMAGES
International Division of Labor
The process where the assembling procedures for a product are spread out through different parts of the world.EX:IMAGES
Manufacturing Exports
The products that are produced and shipped to another country. This is very common as production costs in other countries is often cheaper, which explains why a country would import a product rather than produce it themselves. Ex:IMAGE
Tertiary Economic Sector
The provision of goods and services to people in exchange for payment, such as retailing, banking, law, education, and government. EX:IMAGE
Space-Time Compression
The reduction in the time it takes to diffuse something to a distant place, as a result of improved communications and transportation systems.EX:IMAGE
Social Development
The way in which individuals' interactions with others and their social relationships grow, change, and remain stable over the course of life.EX:IMAGES
Dependency Theory
This analysis puts primary responsibility for global poverty on rich nations. In contrast to the modernization model, dependency theory holds that economic development of many countries in the world is blocked by the fact that industrialized nations exploit them. How can a country develop when its resources (natural and human) are controlled by a handful of prosperous industrialized countries? Inequality has its roots in the colonial era when European nations colonized and exploited the resources of other areas around the world. Although virtually all colonies gained independence by the late 20th century, political liberation has not translated into economic health. Dependency theory is an outgrowth of Marxism, which emphasizes exploitation of one social class by the other. According to Wallerstein, the world economy benefits rich societies and harms other countries by making them dependent on the core countries. Their dependency is perpetuated by narrow, export-oriented products, such as oil, coffee, and fruit. They lack industrial capacity, so they are caught in a cycle of selling inexpensive raw materials and buying expensive manufactured goods, forever spending more than they take in. As a result, they often have high foreign debt that cripples their economies even further. He divided today's countries into three types, according to how they fit into the global economy: 1) Core countries - These are the rich nations that fuel the world's economy by taking raw materials from around the world and channeling wealth to North America, Europe, Australia, and Japan through multinational corporations that operate worldwide. 2) Countries of the periphery - Low-income countries were drawn into the world economy by colonial exploitation, and they continue to support rich ones today by providing inexpensive labor and a large market for industrial products. 3) Countries of the semiperiphery - The remaining countries of the world are somewhere in between. They exert more power than peripheral countries, but are dominated to some degree by the core countries. EX:IMAGES
Break-of-Bulk
Transfer of cargo from one type of carrier to another. Ex:New York City became one of the world's great ports, with a huge skilled and semiskilled labor force, and a fine natural harbor for _____-_____-____ from ships to trains and trucks and vice versa.
Greenhouse Effect
When fossil fuels are burned, carbon dioxide is discharged into the atmosphere, where it traps some of the heat leaving the surface heading back to space. This process is called the__ ___, an anticipated warming of earth's surface that could melt the polar ice caps and raise the level of the oceans enough to destroy coastal cities. EX:IMAGES
Primary Sector
Where workers extract materials from Earth through agriculture, and sometimes by mining, fishing, and forestry; the portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.EX:IMAGE
Industrial Revolution
Which began in England in the latter half of the 18th century and spread to other parts of Europe and North America during the 19th century. The ____ _____brought about major improvements in technology that created an unprecedented amount of wealth.It brought along the invention of the steam engine Diffused-It first started in England then went to Western Europe,North America, Japan,and then to the rest of the world. EX:IMAGES
Acid Rain
Which forms when sulfur dioxide and nitrogen oxides are released into the atmosphere by burning fossil fuels. These pollutants combine with water vapor and eventually work their way into lakes and streams. Results include corrosion of buildings and monuments, fish kills, stunted growth of forests, and loss of crops. Ex:Countries of the former Soviet Union, including Russia and Ukraine, are especially impacted by ___ ______. Aging factories from the Soviet era still emit chemicals that make their way across the region and beyond.
OPEC (Organization of Petroleum Exporting Countries)
• Organization of the Petroleum Exporting Countries (OPEC) formed in 1960 to gain more control over their resource, as a result of U.S. and European transnational companies exploring and exploiting the oil fields of developing countries. • Members - Southwest Asia and North Africa » Algeria, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, and United Arab Emirates - Other Regions » Angola, Ecuador, Iran, Nigeria, and Venezuela • Under OPEC, prices set by governments possessing the oil reserves rather than by petroleum companies.EX:IMAGES
