Developing Countries Have Often Attempted to Establish Cartels So as to Counter

question 25

Essay

Developing countries have often attempted to establish cartels so as to counter the actual or perceived inexorable downward push on the prices of their exported commodities.OPEC is the best well known of these.How are such cartels expected to help the developing countries? At times importing countries profess support for such schemes.Can you think of any logical basis for such support? How are cartels like monopolies,and how are they different from monopolies.Why is there a presupposition among economists that such schemes are not likely to succeed in the long run?