The debt crises in the Third World are traced to one of these developments. Which is it?
A) 1970 US presidential election
B) collapse of the Soviet Union
C) repatriation of profits from TNBs
D) spikes in oil prices engineered by OPEC

Question

Quizplus · Accepted Answer

The spikes in oil prices engineered by OPEC in the 1970s caused a significant increase in the cost of importing oil for the Third World countries. This led to a massive increase in their debt burdens as they borrowed heavily to pay for the increased cost of imports. In addition, many of these countries were also hit hard by global economic downturns and suffered from poor governance and corruption, exacerbating the debt crisis.

The Debt Crises in the Third World Are Traced to One