The formation of cartels or monopolies in other to obtain better bargaining or deals from other countries is characteristic of which of the following?

Step 1: Analyze the question The question asks which group typically forms cartels or monopolies so they can get better bargaining power or deals from other countries.

Step 2: Explain the concept A cartel is a group of producers or countries that producing the same product agree to coordinate output and prices, so they act like a single monopolist. Because they sell identical or very similar goods, they would normally compete and drive prices down. By joining together, they control supply and gain bargaining power against buyers.

The best-known example is OPEC (Organization of the Petroleum Exporting Countries), of which Nigeria is a member. Its members all produce crude oil, and they coordinate production quotas to influence the world oil price.

Step 3: Check each option

• A. International Monetary Fund: The IMF is a lending and monetary-stability institution. It is not a producer group and does not form cartels.
• B. Countries with comparative advantage: Comparative advantage explains why countries specialise and trade. It does not mean they form cartels. These countries often produce different goods and gain from trade without needing to collude.
• C. Countries with superlative advantage: This is not a standard economic concept in international trade theory.
• D. Countries producing same or identical goods: Countries making the same product have the incentive and the ability to unite and control supply, as OPEC members do. This fits the definition of a cartel.

Step 4: Answer

Tip: Link the word cartel with "same product". Whenever you see cartel, think OPEC: many sellers of the same good joining together to act like one monopoly.