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Social Studies
gababb09:

What are Iraq's major Industries? What are the risk to those Industries?

justjm:

OIL OIL OIL!!

justjm:

It's like the reason why the country is still thriving. Applies to most of the middle east. The risk can be seen in markets. When renewable resources are being considered around the world, they're like product substitutes. It'll lower the market demand for oil, and soon, Iraq won't earn money from oil.

justjm:

Also there can be domestic risks, such as the risk of terrorism which can impact the smooth service of oil delivery. This can impact the SUPPLY of the market.

justjm:

To counter this, Iraq and several other middle eastern countries formed a supranational organization called OPEC, where these Middle Eastern countries have formed a alliance within themself. Some people have argued that OPEC is a monopoly but it is in reality a cartel, because the firm demands of OPEC still do depend on the market (internationally).

justjm:

In case you are wondering, this is among one of the main reasons why countries are hesitant to switch to renewable resources. Over the 20th century, developed countries made several oil reserves, coal mines, and natural gas reserves. They spent several billions of dollars in input costs. With the advancement in technology and the formation of renewable resources, the market demand of fossil fuels has gone down, and we've spent billions on that. It's also difficult to switch, because fossil fuels overall are overall an oligopoly.

justjm:

This is also why places like Dubai, Doha, and Saudi Arabia are extremely rich. However, the market demand suppression in oil can create issues, which is one of the major warnings for these giants.

Allison:

I’m from Iraq, I confirm his/her answer!

justjm:

Wow that's nice! Pakistani here

Allison:

Very well then :) nice to meet you!

justjm:

Haan. Nice to meet you as well.

Allison:

(:

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