The De Beers Diamond Mining and Marketing Company of South

question 4

Multiple Choice

The De Beers diamond mining and marketing company of South Africa became one of the most profitable and longest-lived monopolies in history.Which of the following has always threatened De Beers' control of the diamond market?

• A)Since few diamonds are ever destroyed, De Beers has constantly faced possible competition from other firms reselling diamonds.
• B)Competition from imitation diamonds. Technology has made it possible to make fake diamonds look exactly like real diamonds.
• C)Competition from other gemstones, including rubies and emeralds, that have become more popular over time.
• D)At different times in the past some countries have banned the importation of diamonds from South Africa for political reasons.

Identify the gains from international trade in terms of total surplus and the distribution of benefits among consumers and producers.

Understand the strategic implications of import tariffs and agricultural subsidies in international trade.

Identify the common arguments for and against trade restrictions.

Recognize the historical background and purpose of the General Agreement on Tariffs and Trade (GATT).

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Definitions:

Bulbar Conjunctiva

A membrane covering the white part of the eyeball (sclera) and lines the inner surfaces of the eyelids.

Anterior Sclera

The front part of the sclera, the white, opaque outer protective covering of the eyeball.

Eyelids

Foldable covers made of skin and muscle that protect the eyes from debris and help in regulating the amount of light entering the eye.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the size of the pupil and thus the amount of light that enters the eye.