Essay about The Price of Diamonds Is Too High - 1177 Words

Statement: â€Å"The price of diamonds is too high.† The diamond cartel is the most successful and long-lasting cartel in history. The cartel created a scarcity for diamond and stabilized the prices at a high level. This essay will be discussing the validity of the statement with reference to the market of the diamond industry, history of the diamond cartel, how the price of diamonds is determined, and the implications thereof. â€Å"A cartel is a group of firms acting together†¦to limit output, raise prices, and increase economic profit.† (Parkin et al., 2013:312) The diamond cartel formed when diamonds were discovered in South Africa. This discovery, in 1870, brought a rush of prospectors to South Africa to search for alluvial diamonds. The search†¦show more content†¦Therefore, the discovery of diamonds resulted in an overall decrease in the price and value of diamonds. Rhodes saw the diamond cartel as a solution to this problem. Rhodes used the cartel to limit the supply of diamonds to the actual demand, thereby stockpiling the excess supply. De Beers not only controlled the market in South Africa, but they also expanded their holdings to other parts of the world, such as, England and Israel. (Epstein, 1982:1) By 1929, when Sir Oppenheimer took control of De Beers, the transition between the actual mining to the distribution, which is controlled by the Central Selling Organizing (CSO), became centrally controlled. (Spar, 2006:197-198) By analysing the definition of monopoly, which â€Å"†¦is the exclusive right of a person, corporation or state to sell a particular commodity† (Lerner, 1934:157), we can deduce that the diamond industry is a single-price monopoly; in other words, De Beers created its own barriers to prevent others from entry by obtaining control of the supply of diamonds (Parkin et al., 2013:273) and selling at the same price to all its customers (Parkin et al., 2013:275). Since by definition, a monopoly consists of one entity, a monopolist has complete control of the supply of the commodity; therefore, it has market power and, thus, has the ability to control the prices. (Parkin et al., 2013:272-273) The same would apply to the diamond industry: De Beers was the only firm that minedShow MoreRelatedThe Price of Diamonds is Too High Essays1079 Words   |  5 Pagesâ€Å"THE PRICE OF DIAMONDS IS TOO HIGH† For more than a century the diamond industry has flourished beyond expectations. The diamond has grown from a small yet rare gem stone to that of a rather large and powerful symbol of wealth. The industry has been controlled by one major corporation, De Beers. De beers along with the cartel it set up has built an industry that will last forever. (Spar, 2006) This paper will analyse the diamond industry, paying specific attention to the cartel, how it operates;Read MoreEssay on The Price of Diamonds Is too High984 Words   |  4 PagesThe Price of Diamonds Is Too High For centuries the diamond has fascinated man for its alluring sparkle and physical hardness. Formed about three billion years ago, the diamond may very well be the oldest and most precious item any person can own. The internationally accepted notion that this commodity is one of the most treasurable commodity of them all has led to the public being prepared to pay the prices that are set by a group of companies in an agreement known as a cartel. This essay willRead MoreThe Price of Diamonds Is too High Essay1119 Words   |  5 Pagesâ€Å"The price of diamonds is too high† This essay discusses the statement â€Å"the price of diamonds is too high†; it will analyze the diamond cartel and its history in order to determine the validity of this statement. Various microeconomic theories will be discussed and explained, all of which are involved in the diamond cartel. The Oxford Dictionary defines a cartel as â€Å"an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition†Read MoreThe Price of Diamonds Is Too High Essay1215 Words   |  5 Pagesstatement â€Å"The price of diamonds is too high†. Diamonds have always been presumed to be rare. They have been present in history as a symbol of wealth and luxury as they were so difficult to find. Nowadays diamonds are mined and are found all over the world but they are sold through a cartel. (Epstein 1982) A cartel limits the supply of a product in order to keep prices high and to limit competition. (South African Pocket Oxford Dictionary: 2002) This raises the question of whether diamonds are actuallyRead MoreThe Price of Diamonds Is too High in the Modern Market Essay1281 Words   |  6 Pagesmore dependent on diamonds as the years go by. From finding this rare gem in the depths of the earths’ crust, to it now being used as a certain love gesture. The rarity of this beautiful gem has changed, however has the price of diamonds changed accordingly with its value (placed upon by society). This essay will effectively argue that the price of diamonds is too high in the market in the present day as a result of various economic factors. The essay will give information on diamond cartels and howRead MoreThe Price of Diamonds Is Too High The price of diamonds has been controlled, up until recently, by1700 Words   |  7 PagesThe Price of Diamonds Is Too High The price of diamonds has been controlled, up until recently, by cartels. Cartels are formed when suppliers of a particular product or service formally agree not to compete with one another. Cartel agreements usually determine the price, output and supply levels as well as where and to whom the product will be distributed to. De Beers is one of the commonly heard names with regard to diamonds. Up until recently De Beers controlled the diamond industry. It bothRead MoreThe History of the Diamond Cartel and Its Role in Determining the Price of Diamonds1174 Words   |  5 PagesDiamonds have been identified as being precious but expensive gems for many decades. Diamonds were extremely rare, only found in India and Brazil until the late nineteenth century (Vogelsang, 2005: 5). After the discovery of diamonds in South Africa, the diamond industry began to flourish. Diamonds then became very abundant and cheap to produce. In order for the value of diamonds to remain as high as they were during the phase in which they were still rare, a diamond cartel was introduced. A cartelRead MoreShould Diamonds Cost so Much? Essay1132 Words   |  5 PagesDiamonds have long been considered some of the most prized and sought after possessions. They have been perceived as indicators of wealth and romance. The diamond market however; has been one of the most controversial and controlled markets in history run by a cartel â€Å"†¦an association of suppliers with the purpose of maintaining prices at a high level and restricting competition† (Oxford English dictionary) formed to prevent the market from becoming flooded with diamonds from too many suppliers, resultingRead MoreEssay on The DeBeers Diamond Cartel1139 Words   |  5 Pagesdiscovery of diamonds, the precious gem has always remained an item of luxury and great beauty and one that requires a great deal of financial sacrifice in order to acquire. Prices of diamonds have remained relatively stable over the last 100 years while prices of other commodities have fluctuated heavily (Hauser, 2002). Diamonds are a relatively rare commodity which gives them a high value and with the help of De Beer’s advertising campaign, spanning the last six decades, that high value appealRead MorePov Analysis Debeers1219 Words   |  5 PagesPOV ANALYSIS #1 De Beers Diamonds Corrin Wigren 10/10/11 Situation: The De Beers name has always been synonymous with diamonds due largely impart to the fact that in order for anyone to deal in the diamond business, at some point they will have to deal with at least one of our subsidiary companies, retailers or distributors. De Beers owns 43% of the worlds’ market shares of rough diamonds, but this is way down from the 80% we were at in the 80’s. The diamond demand is at the mercy of an

Pros and Cons of India’s vote in the US sponsored UNHRC Resolution against Sri Lanka. Free Essays

India finally has taken a stand and voted for the US sponsored resolution at the United Nations top Human Rights Body (UNHRC). Every decision taken has its own value. So let us take a look at the Pros and Cons of India’s vote in the UNHRC Resolution against Sri Lanka along with some viable alternatives. We will write a custom essay sample on Pros and Cons of India’s vote in the US sponsored UNHRC Resolution against Sri Lanka. or any similar topic only for you Order Now The important positive aspect of the voting in favour of the resolution is that, the Government of India has finally proved that India stands alongside the Sri Lankan Tamils and they will be ‘there’ for the benefit of the people. It is a welcome stand by the Government, even though it happened after a tough political lobbying between the regional parties of Tamil Nadu. It also shows that India acts in its own show its commitment to shun violence against the unarmed civilians and for their rehabilitation. As the whole Tamil Community people were looking forward for India to act, the GoI (Government of India) did the right thing to garner their support. It may also put an end to the Zigzag diplomacy followed by the Rajapaksha’s Government (Giving a Commitment when Foreign minister of India reaches in Sri Lanka due to pressure from the Tamil Nadu politicians and when he boards the flight, commitment will be in dustbin). May be there is a minute possibility of taking Rajapaksha’s Government to the ICC (International Criminal Court) for the war crime. But what is the resolution in the UNHRC really intends to do to the Sri Lankan Government. To be frank it achieves nothing, rather it HUMILIATES Sri Lanka in the World Political Scenario. The Humiliation is thought to do wonders in the country, which has been proven wrong many a number of times (There are more than 200 resolutions passed against Israel for its action against Palestine, though no solution have been found). The resolution draft which has not been released officially by the UNHRC, is intended to contain only recommending the Government to act according to the Lessons Learnt and Reconciliation Commission (LLRC), with the coordination and active support of the member States of the UNHRC (affecting the sovereignty of the country, like eg: USA dictating India how to control Naxalism and monitoring every move made by the State forces). As India had voted in favour of the US sponsored UNHRC resolution, the whole geographical hegemony is shifting underneath India. With this vote GoI has deliberately distanced itself from Sri Lanka in the International Scenario, since Sri Lanka has always been toeing India in all major International organization, this action might ignite their passion to pursue their own interest or lean towards the ever growing Dragon Warrior (China). A mutual distrust will be created between the GoI and the Government of Sri Lanka (Even though the severity of the resolution has been diluted with active intervention of India). The Big Brother attitude of India in the South Asian region journeys in the downward swirl. India had always maintained a stature of Non Aligned Country and look to avoid any involvement in the internal affairs of other countries, but this voting pattern has severely dented that image which was carved and niched by Foreign Affairs expert Pandit Jawaharlal Nehru. It leads to the questioning of the India’s commitment to the NAM (Non Aligned Movement), SAARC and other regional organizations, who look upon India as a key player in the region. China has been provided with a golden opportunity to strengthen its â€Å"String of Pearls† strategy in Sri Lanka (eg: Habantota port developed by Chinese firms) (encircling India on all the sides diplomatically and strategically). The other important aspect is that the Tamilans in the Sri Lanka are now being portrayed as Enemy of the State (due to the humiliation of the country in the world arena) by the Sinhalese people, which will lead to the increase in the rift between the various communities, rather than improving their co existence and starting of the reconstruction of the nation. Even though India had taken a stand in the issue, GoI must actively participate in the rehabilitation of the Sri Lankan Tamil People with a â€Å"Solution oriented approach†. India has already provided a helping hand in the clearing of the Land mines in the Battle field, along with the building of the houses for the Tamil People. Infrastructure development projects (railways) are being mooted in the war torn areas (Even though the essential supplies sent from India is being rotten in the godowns in Sri Lanka). India must make a dedicated approach towards the Tamil Eelam issue, rather than succumbing to the pressures of the regional parties. Since India is a heavyweight in SAARC and NAM, diplomatic channels can be opened in coherence with these regional organizations to look into the rehabilitation of Tamil people in the Tamil Eelam region. It will provide a more conducive environment to the Government of Sri Lanka the people, rather than being dictated by the high handedness of the Police of the World (USA). People are the pillars of the democracy, so the people to people contact between the various communities in Sri Lanka must be encouraged. Rajapaksha’s government must give in to the demand of the 13th amendment plus plea. This would provide the suitable platform for bringing in a federal structure in the country (dissolution of the power to the Chief Ministers as in the case of India), which is in the best interest of all the stakeholders or communities. Effective steps must be taken against the offenders who were responsible for the atrocities, set loose upon the unarmed civilians and they must be punished according to the rule of law. The one question which will always linger in the mooting of the resolution is the active role played by the USA, which dramatizes them as the champion of the Human Rights (Literally). The answer will be real simple that Uncle Sam was unable to place a firm foot in the Island nation, while the Government of Sri Lanka were fostering and nurturing their relations with countries which have been hostile with USA (Cuba, Venezuela, Iran, etc). This prompted USA to bring the Island nation to bring in order along with its favour, which has severely backfired the USA policy (the strong anti – American mood within the people). This incident outlines the incompetence in assuring that India would become a world power in the near future. If the Human Rights violation in the Sri Lanka had been taken seriously by the Government of India and intended to take action against the lax nature of the action proceeding against the offenders, GoI should have sponsored the resolution rather than backing a resolution which is sponsored by a nation which is totally alien to the Island nation, the responsibility holds up on the shoulders of India due to its geographical, ethnical, cultural and economic proximity to the country. War, would always leave a undeniable scare in the mind of the people along with the sorrows and despair, the Citizens of Sri Lankan have long been made the pawns due to the bad decision making at the time of Independence in the Island nation. Time is always a good healer. The War now over, the hatred sowed in the minds of the different communities must be weeded out and a mutual trust must be incorporated in the minds of the people, with whatever solution available. The International community must look in to the long term prospect of the building the nation to its zenith rather than involving in petty politics and gaining fame. Government of Sri Lanka must aptly remember that â€Å"United is Strength, Divided is to Fail†. Therefore the State must take any possible measure to unite the various communities in the country, even when it is to compromise on some basic ideals. Since ultimately it is for the people the Government is formed as â€Å"Democracy†. How to cite Pros and Cons of India’s vote in the US sponsored UNHRC Resolution against Sri Lanka., Papers

Love In Campus Essay Example For Students

Love In Campus Essay I havent decided which topic to dewell on until I heard of a story, the same story that happened again between my classmates this term. Another pair of boyfriend and girlfriend had said goodbye to each other, leaving only the good memories of the sweet past and a miserable future in front. Someone once told me there are no rights or wrongs in love after he was turned down by a girl. However, he ended up his comment with I dont believe there is true love in campus now, which surprised me most. Another boy, who is one of my best friends, after bidding farwell to his girlfriend, said he still loved the girl so much although it was her who wanted to leave him, which also made me deeply impressed. Although I have witnessed or have heard of many sotories about the love in campus, most of which were ended with tear,sadness and misery, I still firmly believe that there is true love in campus.It may come from a slight trembling in the heart, it may stem from appreciations between good friends and it may have made its way from a pure-hearted talk on a certain occasion, but it does exist and it will not die out as long as human beings remain as emotional creatures. There are many reasons for university students try to find a girl friend or a boy friend.Some want to prove their attractiveness while many of them want to get rid of the loneliness and fastidium of the campus life, still some others just want to have a try on everything including love, but among them, there are people who have really found the resonance of their hearts, and the harmony of their minds between the two of them. And there are people who have devoted themselves into loving each other without demanding return. Love means not ever having to say you are sorry,because love only calls for bona fides, for the true feelings between the two, and understandings of the two under any circumstances. Devotions to love help build a ever-lasting and unfaded love in spite of time, distances and misunderstandings. Many people regard love in campus is immature and somehow childish. But first love is true love, which is as pure as a piece of crystal and as immaculate as a fine blue sky.And its not sophiscated compared with the love outside the ivory tower mixed with money, fame and puissance, which has lost its essence during the hybird with so many factors. There does exist real love in campus, which is becoming more and more scarce nowdays.We have to seek for it ourselves using our hearts and true feelings. When we are experiencing one, cherish it and devote into it no matter what the result may be in the future. Remember there is true love in campus and one day you may discover it. For those who have already in love with someone, just love the one you are  loving and dont leave any regret when looking back into the campus life one day.