How did some OPEC producers seek to get around the production quotas in the face of falling revenues in the mid-1980s?

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BlackTom AI · Accepted Answer

The question asks about the tactics some OPEC producers used to circumvent production quotas during the mid-1980s as revenues fell. 
Option 1: 'Sabotaging other exporters’ infrastructure so their own share of the quotas could increase' This describes clandestine actions against rivals, but there is no well-established evidence that such sabotage was a widely adopted or sanctioned method by OPEC members to bypass quotas in that period. The statement is more conspiracy-like than reflective of documented policy responses.
Option 2: 'They didn’t; all OPEC countries stuck to their quotas' While adherence to quotas did occur in some periods, the historical record in the mid-1980s shows that many members sought ways to soften the impact of low revenues and rising production costs, indicating that strict compliance was not universal across the cartel at that time.
Option 3: 'Increasing their prices' Simply raising prices does not constitute a mechanism to get around production quotas; price adjustments are responses to market conditions but do not address the allocation and limits that quotas impose on production levels. This option misses the strategic method used to circumvent volume constraints.
Option 4: 'Bartering and countertrading' This option reflects a known approach used by certain OPEC producers during the mid-1980s to mitigate the impact of production quotas. By engaging in bartering and countertrading, countries could shift the value of oil transactions through non-cash arrangements or bilateral exchanges, effectively helping to circumvent formal quantity limits and maintain revenue streams despite quota pressures.
In analyzing these choices, it becomes clear that only the fourth option aligns with documented responses where non-traditional trade arrangements were employed to offset revenue declines while nominally adhering to quota frameworks. The other options either overstate illegal or coercive tactics, misrepresent pricing dynamics, or assume uniform compliance that lacked in that particular historical period.

Section Merge: EGEE 120 (SP 24 Merged) FINAL EXAM

How did some OPEC producers seek to get around the production quotas in the face of falling revenues in the mid-1980s?

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