It is in both of their interests to regulate the supply o diamonds to the world, because if too many diamonds became available then the prices of diamonds would be severely reduced. But if both DeBeers and the Russian company
James Sandberg Busies – PJOS 01/05/2007
Busies – Unit 42 Case Study B2.
- It is in both of their interests to regulate the supply o diamonds to the world, because if too many diamonds became available then the prices of diamonds would be severely reduced. But if both DeBeers and the Russian company have equal rights on regulating the supply then the prices would stay at where THEY wanted the diamonds to stay. This would mean that they would not be loosing profit. Also it would mean that DeBeers would not have to buy diamonds from less developed markets such as the ones on Tel Aviv, or other such places.
- This Deal would mean that the buyers of diamonds would be buying high quality diamonds but at quite a high price. It would also mean that there would be a lot more Russian diamonds on the market as opposed to when moist of the Russians diamonds got leaked to the black market where they could be sold at a much lower price than they should have been. This will mean that the world supply of legal diamonds will become much higher, and because there will not be so much being leaked to the black market that will mean that diamond companies will be able to raise their prices and people will still pay for them, because you would not be able to get them any cheaper any where else in the world. It also means that the consumer will probably be buying diamonds from the DeBeers company. This will raise their profit significantly.