If people in other countries stop using as much oil, the economies of Saudi Arabia and Iraq would likely suffer as other countries purchase less oil from them. This can be explained by the following points:
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Reduced Demand: A significant reduction in global oil consumption would lead to decreased demand for oil from countries like Saudi Arabia and Iraq, which are heavily reliant on oil exports for their revenues.
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Price Impact: With reduced demand, the price of oil is expected to decline. Oil-exporting countries depend on high oil prices for their economic health, and lower prices would lead to reduced revenues and lower profits for these nations.
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Impact on Economic Objectives: Saudi Arabia, especially, has been trying to diversify its economy through initiatives like Vision 2030. A significant decline in oil revenues could hinder its ability to invest in these diversification efforts and create jobs in other sectors.
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Unemployment and Economic Strain: As revenues decline, there could be cuts in government spending, which would lead to job losses in the oil sector and related industries, further straining the economy.
In summary, the most accurate assessment would be option C: their economies would suffer as other countries buy less of the oil that Saudi Arabia and Iraq produce. While both countries are making efforts to diversify their economies, they still remain significantly reliant on oil revenues.