While Diamonds Are Mined All Over the World,including in Canada,the

question 35

Essay

While diamonds are mined all over the world,including in Canada,the diamond trade is centred on Antwerp Belgium in an area known as the Diamond Quarter,or the Square Mile.Diamonds are cut and polished in lower wage countries such as India (which accounts for about 90% of all diamond cutting and polishing)but they are traded in Antwerp.There are almost 4,000 dealers,brokers and financial intuitions serving this industry,all located in an area of only several blocks.Antwerp has been the centre of the diamond industry for several centuries since Lodewyk van Berken,a Flemish jeweler invented a device for polishing diamonds around the year 1450.
Which of Michael Porter's four factors of production would help explain why the diamond cutting industry is now centred in India?

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Definitions:

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods and services between parties.

Currency

A medium of exchange that facilitates trade and is usually issued by a government as legal tender.

Nonbanking Public

The segment of the economy that does not include banks or financial institutions, generally referring to average consumers and businesses.

Money Supply

The complete tally of money-based assets available within an economy at a certain point, counting coins, cash, and holdings in savings and current accounts.