ECOCB535_Competency_1_Part_1.doc Economic Events Influence US Economics University of

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ECOCB535_Competency_1_Part_1.doc Economic Events Influence US Economics University of Phoenix ECOCB/535: The Digital Economy Economic Events Influence US Economics Major events can often influe... nce the economy of the US very easily, especially major international events. The governments role in responding to these events includes enormous responsibility since it directly manipulates economic activity within the country on both a micro and macroeconomic level. Two events that had a significant impact on US economics were the 1973 oil embargo and the collapse of the Soviet Union in 1991 ending the Cold War. 1973 Oil Embargo Oil is a major resource globally demanded by many high consumption nations including the United States. Over a third of the worlds oil is produced by a handful of nations that make up OPEC. Saudi Arabia is the largest oil producing nation in this organization by far (McConnell et al., 2018). Collectively OPEC and OAPEC, Arab producing countries, can dramatically influence oil prices by controlling the amount of supply for global consumption. The US and other high consumption countries were attempting to form an organization to collectively negotiate prices with OPEC since combining resources and influence gave much stronger leverage over the oil producing countries (Turk, 2014). OPEC employed a preferential and non-preferentially strategy that divided consuming nations and deterred collective bargaining. Ultimately a crisis developed, and an embargo was placed on the US. Other cou. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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